"Ask a Lawyer"- Can I get out of my cell phone contract?

My cell phone coverage is weak in several areas where I regularly travel around the state.  What are my rights if I want to get out of my cell phone contract?         – Brandon, Jasper

Brandon, you probably do not have legal grounds to cancel your contract under these particular circumstances without incurring early termination fees. 

Cell phone carriers make money in two ways. They sell prepaid plans, allowing you to pay for your usage in advance. Or, they require that you sign a contract agreeing to pay for a set amount of monthly usage. Contracts commit you to an extended period of service, usually two years.

Cell phone contracts are “adhesion” contracts, meaning that the carrier provides essential terms that are not negotiable, typically one-size-fits-all for most of the agreement. The contracts typically contain the same essential language for every customer. If you want the service, you have no choice but to sign the contract without any changes. There’s no room for negotiation.

Cell phone contracts usually don’t require that the carrier provide you with excellent service. Some even contain language stating that they don’t have to. The Contract is more about what you must do during the life of your plan, such as pay your bill on time. They don’t guarantee that the network will always be available or that the service will never drop calls, etc.

If you want to end your relationship with your carrier before your contract expires, most carriers charge early termination fees (EFTs). These fees can be expensive. To get out of your contact early, you’ll have to pay this money. Your contract is legally enforceable, and as long as your contract includes terms for an ETF – and most do – the carrier can sue you in court to collect.

Customers do have some rights. You can legally break your contract without paying an ETF if the carrier introduces a “materially adverse” change to the contract. Materially adverse changes usually involve small extra fees that didn’t exist at the time you signed the contract, or rate changes. If you agreed to pay $110 a month when you signed the contract, your carrier can’t increase the rate to $115 after a few months, unless the contract mentions the potential change. If not, the contract becomes void and you can usually get out of it. You can also argue in court that the terms of your contract are misleading or grossly unfair. However, these lawsuits are difficult to win. You’ll probably need the help of a lawyer.

The law surrounding cell phone contracts and many other consumer contracts is complicated.  Unfortunately, companies that write these contracts write them in complex language and often include fine print that favors the company, not the consumer. Given the amounts typically involved, a consumer with a valid grievance can in many cases have his or her dispute resolved in small claims court.

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