Inphonic settles rebate lawsuit

Nov 08 2006 - 04:05 PM ET | In The News

inphonicLeading online mobile phone dealer Inphonic has settled a lawsuit from the Attorney General for the District of Columbia concerning complaints about the company's rebate practices. The lawsuit was made on behalf of consumers who had filed more than 2,000 complaints about difficulty in getting money back from Inphonic's rebate offers.

According to its third quarter financial filing, Inphonic has set aside $3.8 million to cover the cost of the settlement and related expenses. In addition to the cash payments, Inphonic will adjust its online advertising concerning rebates.

In recent months rebates have been a lessor player, taking play in about 25% of the company's handset sales. That is down about 60% from a year ago.

[via FierceWireless]