A lawsuit charging AT&T's Cingular with engaging in false and misleading advertising when offering rebates on cell phones may proceed in court, according to a consumer organization.
A representative from AT&T declined to comment on the suit and was going to look into the matter.
The Foundation for Taxpayer and Consumer Rights (FTCR) said the suit, filed in California, alleges that instead of giving rebates, or discounted prices reflecting rebates, consumers received a "Visa Reward card" that has restrictions on its use and a timeline.
The case was filed in June 2006, and in May, Cingular asked a federal court to dismiss the suit because "consumers were not harmed or misled and California's consumer protection laws do not prevent the company from engaging in the practice."
This isn't the first lawsuit this group brought against AT&T. In June 2006, the group alleged Cingular misled and overcharged millions of AT&T cell phone users when Cingular bought AT&T. The suit contends Cingular "dismantled and degraded" the AT&T network, forcing AT&T customers to move to Cingular's cell network.
According to the consumer group, the most recent court ruling said, "the court finds that a reasonable consumer, upon seeing an advertisement that promises a 'rebate' of a certain amount, would generally understand that advertisement to mean that the amount will be returned to the consumer in cash, check or its equivalent..."
AT&T's Cingular Web site now refers to the rebate as a "mail in rebate card." The group still finds this misleading and its lawsuit asks the court to order the company to stop the practice and provide refunds to customers.
-Josee Rose; 201-938-5400; AskNewswires@dowjones.com
(END) Dow Jones Newswires "
Posted to the site on 25th July 2007
Posted to: www.cellular-news.com/story/25101.php