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Administrative Law

Possible FCC Cell Phone Deal Chops Cancellation Fees, Axes Lawsuits

Posted May 21, 2008 1:22 PM CDT
By Martha Neil

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Cell phone service providers reportedly are negotiating with the Federal Communications Commission to reduce future cancellation fees for unhappy customers in exchange for the federal regulatory agency's agreement to eliminate state authority to oversee the penalties.

Although full details aren't provided, it appears that the move would eliminate ongoing multimillion-dollar class actions over cell phone cancellation fees, according to the Associated Press.

"It's Christmas in May for the companies," plaintiffs attorney Pamela Gilbert of Cuneo Gilbert & LaDuca, who is involved in the litigation, tells the news agency. If the FCC agrees to the proposal, she says, cell phone companies will potentially save hundreds of millions that would otherwise be awarded in the court cases.

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