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Klobuchar Pushes for Clear, Transparent Billing Practices in Wireless Industry

December 2, 2010

Washington, D.C. – U.S. Senator Amy Klobuchar sent a letter to Federal Communications Commission (FCC) Chairman Julius Genachowski today urging robust oversight of billing practices in the wireless industry.  Klobuchar noted that cell phone companies are beginning to move toward tiered pricing plans that have the potential to create increased customer confusion, mystery charges, and overages on consumers’ wireless bills.  In the letter, she pressed the FCC to ensure that consumers receive clear and transparent wireless billing information.  

“Advancements in wireless technology have presented consumers with exciting new cell phone and smart phone options.  Those advancements should not go hand-in-hand with increased consumer confusion,” Klobuchar said.

Klobuchar has worked to protect consumers from harmful billing practices and earlier this month she called on the FCC to aggressively crack down on “cramming,” which occurs when a third party adds unauthorized, misleading, or deceptive charges to a consumer’s phone bill. 

Klobuchar is a member of the Senate Commerce Subcommittee on Communications, Technology, and the Internet, which has jurisdiction over the FCC.

The full text of the letter is below:
December 2, 2010

 

The Honorable Julius Genachowski
Chairman
Federal Communications Commission
445 12th Street, SW
Washington, DC 20544

Dear Chairman Genachowski:

I write to you once again about billing practices in the wireless industry.  As reported in the Washington Post this week, cell phone companies are beginning to unveil faster, more comprehensive networks at the same time they are moving toward tiered pricing plans based on how much data a wireless customer uses.  In light of these developments, I urge the Federal Communications Commission (FCC) to consider how tiered pricing will impact billing practices in the wireless industry.     

Although the continued evolution of wireless technology will provide cell phone consumers with a variety of voice and data plans to suit their particular needs, tiered pricing can, if not implemented correctly, lead to increased consumer confusion, mystery charges and overages.  As I’ve said before, consumers should know what they’re purchasing and smart phone users should know how much data they consume.  It is for this reason that wireless companies should offer consumers clear, transparent and informative bills. 

Advancements in wireless technology have presented consumers with exciting new cell phone and smart phone options.  Those advancements should not go hand-in-hand with increased consumer confusion.  For this reason, I urge the FCC to maintain robust oversight of wireless bills.  I look forward to working with you on this issue.

Sincerely,

Amy Klobuchar
United States Senator