D.A. Sues Cell-Phone Company Over Ads

The Ventura County district attorney’s office is accusing a Virginia communications firm of false and misleading advertising and unlawful business practices.

The office’s Consumer and Environmental Protection Division filed the lawsuit against Nextel Communications Inc. on Thursday.

The civil complaint alleges Nextel conducted a direct-mail campaign throughout Southern California that promised new customers who signed up for cellular telephone service by Aug. 31, 1998, would “save up to $100 off their purchase of a Nextel Phone.” The complaint alleges the advertisement failed to disclose that the customer was required to purchase five telephones in order to receive the discount.

“A number of businesses in this county received these solicitations,” Deputy Dist. Atty. Michael Schwartz said. “It’s a classic case of misleading advertising, failing to disclose a very serious restriction on their offer. . . . It’s similar to a bait-and-switch, in which a false offer is used to induce someone to enter a store, and then once they get there they are induced to buy something else.”

The complaint seeks an injunction and monetary civil penalties. After Nextel is served with the complaint, it will have 30 days to file an answer.