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Maryland Alleges AT&T, Cricket Misled Customers About Network Compatibility

Maryland took administrative action against AT&T and subsidiary Cricket Wireless for alleged deceptive marketing, state Attorney General Brian Frosh (D) said Monday. A hearing is scheduled for Sept. 9 at the state's Office of Administrative Hearings in Hunt Valley. The…

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AG office’s Consumer Protection Division alleged the carriers violated the Maryland Consumer Protection Act by failing to inform consumers that their CDMA cellphones would stop working when Cricket combined with AT&T and moved customers to the parent’s GSM network. Cricket knowingly sold the phones in the year before the companies combined and after it, the state claimed. “This practice, we allege, was undertaken to maximize profit from the sale of expensive smartphones without regard for the harm it would cause consumers,” said Frosh. The AG sought restitution, an injunction, civil penalties and legal costs. "Following the acquisition, we smoothly transitioned customers to our network under a plan approved by the FCC and that included valuable incentives for new devices," an AT&T spokesperson emailed. "We are surprised by this action and intend to disprove the allegations."