Texas Sues Sprint For Deceptive Billing Practices

The Texas Attorney General today filed suit against Sprint over their false and misleading billing practices.

    “Abbot said Sprint Nextel began charging Texas customers a 1-percent fee in January, claiming it was necessary to reimburse the carrier for a state-imposed tax. Sprint Nextel, according to Abbot, describes the fee as a “Texas Margin Fee Reimbursement,” wording the lawsuit alleges is deceptive because the tax does not become effective until Jan. 1, 2008, and has not been set at a 1 percent rate.

    …Abbot’s lawsuit, which requests temporary and permanent injunctions against Sprint Nextel, asks the court to halt the alleged deceptive billings and to compel the carrier to reimburse all customers who paid this fee. The suit also seeks civil penalties of $20,000 per violation under the Texas Deceptive Trade Practices Act.”

Don’t mess with Texas. — BEN POPKEN

Texas sues Sprint Nextel over ‘false, misleading and deceptive’ billing [RCR Wireless]