updated 04:00 pm EST, Thu February 7, 2008
Sprint fraud lawsuit
National phone carrier Sprint is the focus of a new class action lawsuit, according to reports. The company is accused of defrauding customers by extending contracts without "adequate notice," or else by doing so without "obtaining meaningful consent." The plaintiffs are specifically upset at having contracts extended by up to two years because of minor changes, such as adding extra minutes, or buying a new phone. One accusation suggests that the company may be actively tricking people into longer contracts, tying them to "courtesy discounts."
Sprint and its workforce have undergone considerable turmoil within the past year, most recently the firing of 4,000 employees and the closing of 125 retail stores. The company lost 385,000 subscribers in 2007, a fact attributed partly to network problems, but also to bad customer service, prompting many people to leave for another carrier. Some are also likely to have left to buy the iPhone from Apple and AT&T. [via RCR Wireless News]