AP: FCC May Change Terms of Cellphone Contracts
May 21, 2008
The Associated Press is reporting that the Federal Communications Commission (FCC) is "quietly negotiating" with several wireless phone carriers to reduce early termination fees and to provide consumers with a grace period in which to cancel their cellphone contracts without penalty. You may recall that both of those provisions were included in the Cell Phone Consumer Empowerment Act of 2007 that Senators Amy Klobucher (D-MN) and Jay Rockefeller (D-WV) introduced last Fall.
While fees currently vary by carrier and the two largest cellphone providers AT&T and Verizon Wireless already prorate early termination fees, $175+ penalties to cancel a cellphone contract have outraged some consumers and prompted class-action lawsuits against the cellphone industry in states like California and New York.
According to the AP, an agreement with the FCC "would let cell phone companies off the hook in state courts where they are being sued for billions of dollars...[and]...also would take away the authority of states to regulate the charges."
Verizon Wireless introduced the proposal, which calls for prorating and capping early termination fees, and allowing customers to cancel cellphone service without penalty up to 30 days after contract signing or within 10 days of receiving their first bill.
Tags:
Amy Klobucher, ATT, Cell Phone, FCC, Verizon, wireless
