Prepaid Wireless

A Chicagoland wireless company just brought to justice another local wireless company for frauding Chicago consumers, via a Federal Court ruling on April 27, 2010. PlatinumTel Wireless, a Chicago-based nationwide prepaid wireless provider that operates on a 3G Network that reaches 280 million people, alleged that EZ Stream Inc., whose customers were exclusively in the Chicagoland area, perpetuated false advertising and consumer fraud. On April 27, 2010, the Federal Court ruled in favor of PlatinumTel under the Lanham Act and Illinois Consumer Fraud Act alleging among other things, false advertising, and deceptive practices. PlatinumTel was awarded a judgment of $15,340,089.70, which includes monies for both compensatory and punitive damages.

PlatinumTel found that EZ Stream, Inc. significantly misrepresented the minutes available under their prepaid wireless programs sold to consumers. Customers' used minutes were being routinely over calculated on their statements, meaning that the consumer was charged for more than the actual amount of minutes that they used.

PlatinumTel's lawsuit win marks a major landmark ruling in the prepaid wireless industry and for its consumer's rights and advocacy. The outcome will change the landscape of prepaid wireless in Chicagoland and nationally, making it clear that wireless companies will not get away with taking advantage of their customers.

"For years, Chicago companies have fought to give prepaid wireless a good name and set high standards for practice in this market," says Omar Aqel, COO at PlatinumTel. "Chicago consumers were clearly being taken advantage of and PlatinumTel felt it was our responsibility to fight against this consumer fraud. Our efforts successfully protected Chicago consumers by stopping the defendants' cheating and simultaneously helped to maintain and protect the honesty, integrity and legitimacy of the prepaid space in this market. We hope this ruling will create a benchmark from which all prepaid wireless providers should base their operations in Chicago and nationally."

Aqel continues, "as a result of this legal outcome, retailers will now have more confidence in the prepaid wireless providers as partners and there is less risk for potential liability due to dishonest practices. PlatinumTel orchestrated this for the good of the industry and will remain an advocate for consumers and retailers alike."

For more information about PlatinumTel Wireless, please visit www.PlatinumTel.com.