Cingular Wins Ruling over Discount Phone Tax

VENTURA, Calif. (CN) - Cingular did not mislead its customers when it failed to inform them that they would pay tax on the full price of a phone that was on sale, a California appeals court ruled.

Richard Yabsley received a 50 percent discount on the phone he bought from Cingular because he enrolled in the calling plan.

He paid $11.62 more than he expected when he checked the receipt and noticed that he was taxed on the full price.

However, Judge Perrin ruled that Yabsley cannot prevail in his claim of false advertising, because Yabsley had the option of reading the receipt and refusing to complete the purchase.

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