Consumer Protection News

Consumer complaints about cell phones and service are skyrocketing, far outpacing the significant growth of the industry, according to a study released today by the Wisconsin Public Interest Research Group (WISPIRG). Can You Hear Us Now? A report on how the cell phone industry has failed consumers, chronicles the proliferation of confusing calling plans, billing errors, hidden fees, dropped calls, spotty signal coverage, inadequate customer service and excessive contract termination fees. The report recommends that Wisconsin adopt basic, common sense consumer protections for cell phone subscribers. At the Capitol press conference, WISPIRG called for the swift passage of the Cell Phone Users' Bill of Rights filed by Representative Terese Berceau (D-Madison).

"The current state of cell phone protection is virtually non-existent," Rep. Berceau stated. "The cell phone industry is operating with a frontier mentality. While the industry has grown dramatically over the last ten years, consumer protection hasn't nearly kept pace. In the lobby-led race towards deregulation, we have left consumer protection in the dust."

Among the industry shortcomings highlighted in the report are the widespread use of vague and misleading marketing, poor billing practices, a lack of customer service and the aggressive use of extended contract periods and transfer fees designed to tie consumers down and make it difficult to drop or change providers.

"My cell phone service provider (AT&T / Cingular) has assured me their coverage area was expanding in the next "several months". I have had my new plan for six months now and I still experience areas in which I have absolutely no signal... not even an analog signal! I am fed up with their empty promises!" said Kent Borden of Milwaukee.

Because the Federal Communications Commission (FCC) has refused to enact even the most basic consumer protections, WISPIRG has joined forces with Rep. Berceau in pushing for a Cell Phone Users' Bill of Rights to ensure that the cell phone industry is "governed by basic consumer standards".

"Cell phones are a gamble," said Jennifer Giegerich, WISPIRG's State Director. "There is no guarantee that they will work when you get them home and currently, there is nothing a consumer can do about it."

Wisconsin consumers need a loud and clear answer the their cell phone problems. The cell phone users' "Bill of Rights" includes the following provisions:

• Carriers should obtain customers' express permission prior to making cell phone numbers public. They should not charge a fee for keeping the number private.
• All wireless contracts and marketing materials should clearly spell out the terms of the contract in an easy-to-read, standardized format. The disclosures should be made available and accessible to consumers comparing prices and services among competing carriers. Cell phone companies must provide consumers with coverage maps that are as accurate as current technology would allow.
• The state utility commission should monitor service quality. Data should be collected and made publicly available so consumers can compare signal strength, dropped call counts and dead zones across carriers.
• Consumers should have a risk-free trial period during which they can cancel any new service after receiving their first bill, without incuring the high contract cancellation fees, currently ranging from $150-$275. This trial period would give consumers time to evaluate whether the cell phone service works where and how it was promised. Consumers should have 30 days to cancel a contract after receiving the first bill so that they may verify representations regarding the cost of service.
• Contracts should be for no longer than one year, with an option for renewal. Any material change to the contract must be provided to customers in advance, with an opportunity to terminate contract with a pro-rated refund of the charges they paid for purchasing a phone for the carrier's network and no early cancellation charge. Contracts can not be autimatically extended without customer's permission.

The Cell Phone Bill of Rights will address many of consumers' complaints by ensuring that consumers receive accurate information before they purchase a cell phone plan and enough time to cancel that plan if it doesn't deliver what was promised," said Steve Meili, Director of the University of Wisconsin Law School's Consumer Law Litigation Clinic.

The Report also includes a cell phone shoppers' guide to help consumers evaluate and compare cell phone companies and services. For the full report, www.wispirg.org.