WASHINGTON - U.S. Senator Tom Udall, D-N.M., today released the following statement on the Federal Communications Commission's proposed "Bill Shock" rules:
"Today, cell phones and mobile devices have become the standard for communicating -- not the exception. During these tough economic times, high poverty rates and depleted family budgets have become all too common, too. That is why explicit notification and consent guidelines are critical to preventing cell phone bill shock.
I commend FCC Chairman Julius Genachowski for proposing these new rules to help protect consumers from cell phone bill shock. In particular, requiring providers to notify customers before they exceed their monthly limits is a commonsense step to help users avoid doubling and tripling their bills.
While this notification principle will go a long way toward the goal of reducing bill shock, more should be done. The final FCC bill shock rules would prove more effective by also requiring customer consent, or ‘opt in,' before phone companies can charge astronomical overages on top of monthly billing plans.
My legislation, the Cell Phone Bill Shock Act (S.3872) would require cell phone companies to notify customers by email or text message - free of charge - when they have used 80 percent of their monthly limits under their current plan. It also requires wireless phone companies to obtain customer consent before charging for services that are not covered by their regular monthly service plan. These provisions would increase transparency and reduce bill shock at a time of increased popularity for smartphones, such as BlackBerries and iPhones, which are equipped with new features beyond traditional voice services.
I look forward to continuing to work with Chairman Genachowski as the FCC pursues a ‘Consumer Empowerment Agenda' to curb abusive billing practices."
Udall is a member of the Senate Commerce, Science and Transportation Committee. His legislation, S. 3872, has been endorsed by over 25 organizations, including Consumers Union, which publishes Consumer Reports magazine.
