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Suit Targets Tandy Sales of AirTouch Service

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State Atty. Gen. Bill Lockyer, joined by the city of Los Angeles and Monterey County, filed a $20-million suit against AirTouch Cellular and Radio Shack parent Tandy Corp. alleging false advertising and unfair business practices in selling AirTouch wireless phone service. The suit, filed in San Francisco County Superior Court, accuses AirTouch and Radio Shack of not disclosing to customers terms of AirTouch service contracts, such as that early cancellation would trigger a $150 fee. The case stemmed from consumer complaints and from undercover shopping expeditions to buy AirTouch service at Southern California Radio Shack stores. AirTouch, a subsidiary of Vodafone AirTouch, said it hadn’t yet reviewed the suit and had no comment.

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