Supreme Court: Cell Phone Unlocking Class Action Deserves Trial

Authored by Mark Hefflinger on May 28, 2008 - 11:21am.

Washington - The U.S. Supreme Court has declined to hear an appeal in a case involving the rights of consumers to "unlock" mobile phones from a particular network, which in effect will allow a lawsuit charging AT&T (NYSE: T) and T-Mobile (NYSE: DT) with unfair business practices to proceed to trial, Wired.com reported.

Similar lawsuits against Verizon (NYSE: VZ) and Sprint (NYSE: S) compelled those companies to agree to unlock their subscribers' handsets once an original contract expires, and made all four carriers reduce the penalty fees they charge when a consumer breaks a contract early.

If the current class action against AT&T and T-Mobile is successful, it could force AT&T to end its lucrative practice of locking Apple's iPhone to its network.

However, the company also requires consumers to agree to a relatively lengthy two-year contract when purchasing an iPhone.

 

Related Links:
http://blog.wired.com/27bstroke6/2008/05/supreme-court-o.html



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