A California court has found (Washington Post) that Sprint Wireless early termination penalty fees (ETFs) are illegal and unconscionable under California law and ordered restitution of $73 million. Earlier this month, Verizon settled a similar case for $21 million to avoid losing its own lawsuit. We've long argued that ETFs are designed to keep consumers trapped (our report Locked In A Cell); when consumers cannot shop around, the company can get away with shoddy service. Further, we believe state law is the proper place to decide these cases. Nevertheless, former Rep. Tom Tauke (R-IA) of Verizon and former Rep. Steve Largent (R-OK) of the CTIA trade group have been circling the FCC for years seeking a ruling preempting stronger state laws. But as consumer attorney Pam Gilbert told the Post:

"And if the FCC turns around now and gives the companies the get-out-of-court-free card, it means the FCC is going to be condoning what was past illegal behavior and letting the companies off the hook for illegal behavior."