D.C. Attorney General sues Inphonic

Jun 09 2006 - 02:15 PM ET | In The News

The Attorney General for the District of Columbia has sued Inphonic [free reg req] on behalf of consumers. There have been more than 2,000 consumer complaints against the company over the past three years. Inphonic is the leading online retailer for mobile phones, powering sales for sites such as WireFly.com and RadioShack.com.

The complaints are centered around difficulty in receiving promised rebate money.

For example, the suit alleges that for customers to qualify for some rebates, InPhonic in 2004 required them to submit a cellphone bill that was at least 120 days old -- to prove that they had stayed with their plan and made their payments. But the document had to be postmarked within 120 days of when the service was activated.

Inphonic has activated more than 2.5 million lines during the timeframe and counters that there will always be a certain number of unsatisfied customers.