Legal News

Customers Hang up on Qwest?s Termination Fee, File Suit

By Ashby Jones

Hey LBers, want to get out of your broadband Internet subscription, but don’t want to pay the early-termination fee? If so, you might pay attention to a lawsuit filed earlier today in Seattle federal court. Two former customers of Qwest Communications have filed a putative class-action lawsuit against Qwest, seeking to end early-termination fees for Internet subscribers.

Click here for the WSJ story, from Andrew LaVallee; here for the complaint. Qwest declined to comment on the suit.

In recent months, customers have fought similar charges for early termination of cellphone contracts with wireless carriers. The suit filed today is one of the first challenges to the practice of early-termination fees as it applies to broadband services.

As far as complaints go, this one ain’t a bad read. Robin Vernon and Rory Durkin were each charged $200 when they canceled their high-speed Internet service, even though they allege they hadn’t signed contracts to that effect. According to the complaint, Vernon was told that her husband signed a contract, which Qwest couldn’t provide a copy of. In another call, a customer-service rep said she agreed to the contract terms over the phone, but no recording was available. When Vernon pressed the issue, the customer-service rep told her “You’ll be sorry” and hung up on her.

The other plaintiff, Rory Durkin, canceled service because his computer broke down. He changed his mind when told of the fee, effectively paying for Internet service even though he didn’t have a computer to access it. Months later, when he attempted to cancel it again, he was told that he’d agreed to a fresh two-year commitment when he rescinded his first cancellation.

Qwest markets its “price-for-life” broadband plans as requiring a two-year agreement, but customers don’t sign a contract, said Michael Lieder, one of the firms representing the plaintiffs. The fee applies regardless of when they cancel service during those two years, he said.

Full post as published by Law Blog - WSJ.com on October 16, 2008 (boomark / email).