FCC Targets ‘Bill Shock’ Reported by Some Wireless Customers
The FCC Consumer & Governmental Affairs Bureau said it’s seeking comment on ways to help cellular customers avoid “bill shock.” Under a notice of inquiry, the bureau is considering ways to alert subscribers to charges before they add up. Bureau Chief Joel Gurin told reporters Tuesday that consumers should get better information “when it comes to all kinds of communications services."
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The bureau’s approach is modeled on a European Union requirement that carriers send text messages to consumers when they are approaching a limit for data roaming, Gurin said. That’s a simple technique that can apply to all kinds of situations, such as “when you're getting near the limit of your data plan or text plan.” The FCC’s Consumer Center receives about 1 million complaints a year concerning all kinds of communications service, and most concern billing, he said. Gurin said bill shock results from unclear service terms and customer confusion. “The way wireless plans are structured is complex,” he said. There aren’t “clear industry standards on how these plans are structured in a way that would make it easier for consumers to compare one to one.” And “many consumers simply find this very confusing because there are so many factors to balance."
The bureau is seeking information on matters including “the extent to which providers are already offering such usage alerts” and the technological differences that may prevent U.S. wireless providers from employing usage alerts like those in the EU. Comments are due 45 days after the notice is in the Federal Register, replies 15 days later.
"This is a helpful first step down what we hope will be a much longer road to provide wireless consumers with relief and protection in the marketplace,” Consumers Union Analyst Joel Kelsey said. CTIA looks forward to “educating the commission on all of the carriers’ activities and offerings so that customers can stay informed,” said President Steve Largent.
The effort is one of the first by the commission’s Consumer Task Force, Gurin said. Also on its agenda are efforts to reconsider how early termination fees for unbundled cable services should be handled and disclosed, making mobile devices more usable by people with disabilities and creating a working group about helping consumers understand broadband speeds, he said. In looking at ads for broadband speeds, “one thing they all have in common is that they are all blazing fast,” he said. “But ‘blazing fast’ is not a quantitative assessment. We're looking at making this all more scientific, so that people can really draw a line between the speed they need, what’s advertised and what they actually get in a way that really enhances good consumer choice.”