WASHINGTON-Pennsylvania Attorney General Mike Fisher said thousands of Cellular One subscribers in the state will be entitled to refunds as part of a settlement of billing lawsuit against the mobile-phone operator.
Fisher filed a civil lawsuit against Cellular One in July 2001, accusing the Dobson Cellular carrier of failing to disclose a monthly network service fee.
A consent decree was filed in Erie County Court last Thursday and approved the same day by Erie County Judge Ernest J. DiSantis Jr.
The lawsuit, filed under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, alleged the fee was not included in the print and broadcast ads that were placed throughout Northwestern Pennsylvania to promote the company’s fixed monthly calling rate plans.
The lawsuit claimed the monthly network service charge of $1.99 for digital wireless service and $2.99 for analog wireless service were not included in the terms of the one- or two-year contracts consumers signed for a specific calling rate plan. From July 2000 through June 2001, Cellular One collected approximately $1.5 million in network service fees from Pennsylvania subscribers, according to the suit.
Fisher said dozens of consumers contacted his office to complain that they first learned about the fee when it appeared on their Cellular One bills. When consumers contacted the company to inquire about the charge they were told that the fee was necessary “to maintain their quality of service,” according to the Pennsylvania attorney general. The state said customers who wanted to cancel their contracts were told they would be charged a $200 termination fee, regardless of the length of time remaining on the agreements. The suit also claimed the $200 termination fee was inadequately disclosed.
Under the terms of the settlement, Cellular One denied the state’s allegations and agreed to issue a $20 refund check to former Cellular One customers who were charged a network service fee as of July 1, 2000, on their initial contracts.
