Consumer Group Sues Nextel, Cingular

October 23, 2003
A California consumer group has sued Nextel and Cingular, claiming the cell phone companies take advantage of unwary customers and violate state consumer protection laws.

The Foundation for Taxpayer and Consumer Rights claims Nextel stopped issuing itemized bills on Oct. 1, making it difficult for consumers to challenge charges.

In the Los Angeles Superior Court suit, the foundation also alleged that Nextel sent four text messages to all California customers on Sept. 12, charging them 15 cents for each message. Without an itemized bill, consumers may not notice the extra charges, the foundation said.

"They're making it impossible for people to discover they've been ripped off," foundation president Harvey Rosenfield said.

The organization also filed suit against Cingular Wireless, accusing the company of pushing for new customers through its advertising but then providing inadequate service to them. That suit seeks class-action status.

In September, the California Public Utilities Commission fined Cingular $12.1 million after concluding the carrier didn't give new subscribers a chance to change their minds during an aggressive expansion that resulted in shoddy service.

The company calls the charges "baseless."

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