Senate bill aims for more disclosure in cell phone contracts

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Senate bill aims for more disclosure in cell phone contracts

Washington (DC) – Two Senators have introduced a new bill that seeks an overhaul of regulatory policies that have remained unchanged for over two decades.

“The rules governing our wireless industry are a relic of the 1980’s, when cell phones were a luxury item that fit in a briefcase instead of a pocket,” said Amy Klobuchar (D-MN) in a press release.

Klobuchar and Jay Rockefeller (D-WV) introduced a bill in the Senate, calling for everything from reduced early termination fees to more disclosure on coverage areas.

The Cell Phone Consumer Empowerment Act of 2007 says that early termination fees on a two-year contract should be halved after the subscriber has had service for one year.  The bill would also make it possible to cancel service within the first 30 days without any early termination fee.

Billing is also a large part of the proposed law.  Under the proposed guidelines, service providers would have to list taxes and fees in a separate part of the bill, and they must only include charges expressly authorized by federal, state, and local authority.  Klobuchar claims that some service providers charge customers for taxes and fees that don’t legitimately fall into those categories.

Additionally, under the Cell Phone Consumer Empowerment Act of 2007, wireless carriers would need to disclose full information about where service is and is not available, as well as details about services like wireless E-911.

The proposed law entered the Senate floor late last week.