Washington, DC - Attorney General Robert J. Spagnoletti announced today that the District has filed a consumer protection lawsuit against InPhonic, Inc., ("InPhonic") -- a DC based business that sells wireless phones and plans to consumers across the country. The District alleges that InPhonic fails to clearly disclose how difficult it is for consumers to meet its rebate conditions and that many consumers are unable to obtain promised savings.

In its ads, InPhonic claims its rebates will provide substantial savings to consumers who purchase wireless phones and plans, including wireless plans for Verizon Wireless, Cingular Wireless, Sprint, and T-Mobile USA. InPhonic also advertised plans through various websites, including InPhonic, Liberty Wireless and WIREFLY.

The lawsuit alleges that InPhonic imposes restrictive conditions on the rebates that prevent many consumers from receiving the promised savings. The lawsuit also asserts that InPhonic is unreasonable in its enforcement of the rebate terms and fails to adequately disclose charges that it automatically assesses against consumers who switch their rate plan, fail to maintain their accounts in good standing for 180 days, or return defective equipment.

"A company needs to let consumers know up-front about special conditions that make it difficult to obtain advertised savings or to avoid hidden charges. Consumers should be able to count on the bargains that companies offer them." said General Spagnoletti.