National Consumers League Announces Support for Udall’s Cell Phone “Bill Shock” Legislation
WASHINGTON - The National Consumers League, America's oldest consumer organization, has announced its support of legislation introduced in September by U.S. Senator Tom Udall (D-NM) to help limit the cell phone "bill shock" that occurs when wireless customers unwittingly exceed their monthly limits for voice minutes, text messages, or data usage.
The Cell Phone Bill Shock Act of 2010 (S. 3872) 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.
"The requirements proposed in S. 3872 will give consumers the certainty that they will receive an alert when they are in danger of running up high charges. The opt-in mechanism will provide a ‘fail-safe' that will require consumers to consent to high charges. These rules are sensible, common sense solutions to the problem of wireless ‘bill shock,'" wrote Sally Greenberg, Executive Director for National Consumers League, 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.
"National Consumers League is one of the country's most respected consumer organizations, and I am pleased to have their support in this effort to protect consumers," said Udall, a member of the Senate Commerce Committee. "The texting and Internet capabilities that make today's cell phones more useful than ever are also leading to increased ‘bill shock' for Americans who unknowingly exceed their usage limits. This legislation will go a long way toward changing that."
In addition to the National Consumers League, Udall's legislation has been endorsed by more than 25 organizations, including Consumers Union, which publishes Consumer Reports magazine, and the National Association of Regulatory Utility Commissioners.