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U.S. FCC Investigates Wireless Carriers Amid Complaints By Users

The U.S. Federal Communications Commission (“FCC”) is currently investigating cell phone billing practices and complaints by users of Verizon Wireless and other carriers, as a result of complaints by customers of finding “mystery fees” on their bills.  Verizon admitted that it had erroneously charged 15 million subscribers more than $50 million for data services; however they argued it was due to a software glitch. 

Notwithstanding this explanation and Verizon’s decision to provide a refund to those customers, the FCC has stated it would continue with its investigation.

In an effort to prevent similar practices including “bill shock” on cell phone bills from overcharges and roaming fees, FCC Chairman, Julius Genachowski, has announced a proposal that will be formally introduced at an upcoming FCC meeting.  The proposal will “force carriers to warn users when they are close to reaching voice, text and data limits or about to incur international or other roaming charges”.  In addition, the proposal may include “usage caps” that automatically cut off services when users reach their limit.

The wireless trade group, CTIA has argued against the FCC’s proposal, while consumer advocates and policy analysts have provided support for the proposal. If the proposal receives a majority of the votes from the five-member commission, any rule approved will take effect next year.

For additional information, visit:
http://tinyurl.com/2vgfp9n