Washington State High Court Refuses to Enforce Class Action Waivers in Cell Phone Contracts
from Slash Dot we learn that the Washington Supreme Court has held that
[c]lass action waivers included in cell phone companies' contracts with customers are invalid in Washington State because they violate the state's Consumer Protection Act . . . .
Five plaintiffs accused Cingular of overcharging customers between $1 and $40 per month in roaming and hidden charges.
Cingular had an arbitration clause that required individual arbitration and prohibited class action litigation or class action arbitration.
We keep track of these class action waivers in consumer contracts because they are always coupled with an arbitration clause and must therefore overcome the strong federal preference for arbitration and the Federal Arbitration Act's preemption of most state laws that might restrict a party's "right" to compel private binding dispute resolution.
See our previous posts on Sprint's arbitration clause here and here.




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