• Home
• About Amy
• Serving Minnesotans
• About Minnesota
• Issues/ Legislation
• Media Center
• Contact Amy
• FAQ

News Releases

Klobuchar to FCC: Protect Consumer Rights in Cell Phone Market

Calls for strong federal legislation, continued state enforcement

June 12, 2008

Washington, D.C. – Speaking before the Federal Communications Commission (FCC) today, U.S. Senator Amy Klobuchar urged the agency to stand up for the rights of cell phone consumers and preserve the strongest possible customer protections in the fast-changing wireless industry.

Specifically, Klobuchar said the FCC should not reward cell phone companies with special protections in exchange for carrying out promises that many have already made to prorate their early-termination fees. The FCC called today’s hearing to discuss early-termination fees, including a proposal by the wireless industry that would place such fees off limits to state regulation.

“Early termination fees have been a real sore spot for consumers. Too often, consumers find out only after committing to a multi-year contract that their wireless service doesn’t meet their needs – and then they’re locked in by these fees,’’ Klobuchar said. “The current negotiations seem designed to protect America’s big cell phone companies, not to protect America’s consumers. Consumers won’t stand for that, and I won’t either.’’

Klobuchar, a member of the Senate Commerce Committee, has co-authored legislation with Senator Jay Rockefeller (D-WV) to strengthen consumer protections in the wireless industry and preserve consumer choice and effective competition.

The Cell Phone Consumer Empowerment Act would require cell phone companies to pro-rate their early-termination fees, making it easier for customers to change providers and exercise choice when their provider fails to meet their needs. The fees can run as high as $200, discouraging consumers from changing plans. The legislation would also require cell phone companies to provide full, accurate information on wireless coverage and service, and provide bills that are simple and easy to understand.

“I’m pleased that the Commission is taking an interest in how cell phone providers have used and abused early termination fees,’’
Klobuchar said. “But consumers also need the protection of state regulators, who have proven themselves good watchdogs on this industry, and strong federal legislation to level the playing field with the big cell phone companies.’’

###