Judge Rules Early Termination Fees Are Illegal and Violate California Law

A California Supreme Court judge has just ruled that early termination fees from mobile phone companies violates California state law and are illegal. What's this mean to you? Sprint Nextel has been ordered to pay US$18.2 million in reimbursements to customers who already paid their ETF, and to stop trying to collect US$54.7 million from customers who cancelled and refused to pay. But if ETF fees are illegal, does that mean 2-year contracts—which in turn give you subsidised price on your mobile phones—will be a thing of the past? Tough to say, but we're headed towards some change. [Mercury News via Yahoo]

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