WASHINGTON
- Consumers Union, the non-profit publisher of Consumer Reports, has announced its support of legislation introduced earlier this week by U.S. Senator Tom Udall (D-NM) to help limit the 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 2010 would help protect Americans from "bill shock" by requiring 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.
"It is clear laws that make it easier for consumers to understand their bills and alert consumers prior to overage charges are needed, especially in such difficult economic times. The provisions of the Act are very precise and clear, especially those ensuring that consumers will not be charged extra for being notified of reaching 80 percent of their monthly limit. We applaud your leadership on this issue and look forward to working with you," wrote Parul P. Desai, Policy Counsel for Consumers Union,
in a letter to Udall announcing the organization's support.
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. A recent Federal Communications Commission 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.
"More and more Americans are experiencing the unwelcome bill shock that comes with exceeding cell phone usage limits - especially now that smartphones have become an everyday part of our lives. It's time that we do something about it," Udall said. "Consumers Union is one of the premier consumer advocates nationwide, and I am pleased to have their support in this effort."
For more information on how consumers can avoid cell phone "bill shock," click
here
for a link to a September 2010 article in Consumer Reports Magazine.
