CU Urges Crackdown on Cell Phone “Bill Shock” in FCC Comments

WASHINGTON, D.C. — Consumers Union, the nonprofit publisher of Consumer Reports, today joined other public interest groups in filing joint comments at the Federal Communications Commission (FCC) in support of a crackdown on cell phone “bill shock" -- the problem when people get hit with unexpected charges on their wireless bills.

The groups' filing cited a recent survey by Consumer Reports that found approximately one in five respondents had received a cell phone bill that was significantly higher than they had expected in the past 12 months. Among those who experienced "bill shock," half said the bill was at least $50 higher than expected, and one in five said the bill was $100 more than expected. The survey of 58,000 Consumer Reports subscribers was conducted in September 2010.

The FCC proposed requiring wireless providers to notify customers before and when they reach their monthly limits for voice, text, and data services in October 2010. Customers would get a notice, such as a voice or text message, when they approach their limits. Today is the deadline for submitting comments to the FCC about its proposal.

Parul P. Desai, policy counsel for Consumers Union, said, “For too long, consumers have been getting blindsided by surprise charges on their cell phone bills. Wireless companies are not providing adequate, uniform tools for people to keep up with their accounts. Notifying customers before they exceed their limits is a simple, effective way to prevent ‘bill shock.’”

Consumers Union has endorsed the FCC proposal. In the comments being filed at the FCC today, the groups are urging commissioners to consider going further by requiring that wireless carriers obtain a subscriber’s affirmative “opt-in” agreement to such penalty fees before they can be charged. Under this proposal, if a subscriber declined the charges or failed to respond, wireless carriers would be required to discontinue service until the subscriber agreed to the penalty or purchased an additional allotment of service, or the subscriber’s monthly allotment for the service was replenished. The groups noted that a subscriber in this situation should still be allowed to contact the wireless carrier and 911.

The groups signing on to the joint comments included Consumers Union, the Center for Media Justice, Consumer Action, Consumer Federation of America, Free Press, Media Access Project, National Consumers League, National Hispanic Media Coalition, and New America Foundation.

Contact:
David Butler, Consumers Union, 202.462.6262 or dbutler@consumer.org

About Consumer Reports

Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.

© 2011 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.