Udall Introduces “Bill Shock” Legislation

Bill Would Require Text or Email Notification to Prevent Shocking Bill Overages on Voice, Text or Data Usage

WASHINGTON - U.S. Senator Tom Udall (D-NM) today introduced legislation to help limit cell phone "bill shock" that occurs when cellular customers unwittingly exceed their monthly limits for voice minutes, text messages, or data usage.

The Cell Phone Bill Shock Act of 2011 would require the Federal Communications Commission (FCC) to issue a rule that would require cell phone companies to notify their customers via text or email when they have used 80 percent of their monthly limit of voice minutes, text messages or data usage. It would also require the cell phone company to obtain a customer's consent before charging for services in excess of their monthly limit of voice, text or data usage.

"Sending an automatic text or email notification to a person's phone is a simple, cost-effective solution that should not place a burden on cell phone companies and will go a long way toward reducing the pain of bill shock by customers," said Udall, a member of the Senate Commerce Committee. "As more and more cell phone companies drop their unlimited data plans, this problem only stands to get worse. I am proud to stand up for cell phone consumers and reintroduce this important legislation."

Cell phone bill shock has become more common with the increased popularity of smartphones like BlackBerries and iPhones that have made it easier for Americans to exceed their service limits without knowing it - especially when using faster "4G" networks for mobile broadband uses. Examples cited in recent news reports include the case of a Navy ROTC midshipman who mistakenly left his smartphone's roaming function turned on while he was abroad - and returned home with a bill for almost $1,300. In another case, a teen's cell phone data usage led to a $22,000 bill for mom and dad; and another man, Bob St. Germain of Massachusetts was billed $18,000 for a six-week period when his son used a cell phone to connect a computer to the Internet.

The European Union already requires wireless phone companies to provide similar notifications to their customers when they have reached 80 percent of their monthly data roaming services.

A recent FCC survey found that 30 million Americans - or one-in-six adult cell phone users - have experienced "bill shock," and 84 percent said their cell phone carrier did not contact them when they were about to exceed their allowed service limits. In about one-in-four cases, the bill increased by more than $100.