March 13, 2006

Already triumphant in persuading California regulators to overhaul a bill of rights for cell phone consumers, the US mobile phone industry now faces a similar battle clear across the country in the state of New York.

AARP is rallying today in support of a wireless consumer protection bill before a hearing in the state Assembly.

“New York consumers who find themselves roped into long-term cell phone contracts, filled with hidden fees and bad service, clearly need a law on their side,” said Lois Aronstein, AARP New York state director.

“AARP commends Assemblyman [Daniel] O’Donnell (D) and Assemblyman Richard Brodsky (D) for their efforts to ensure that people have the consumer protections they need and deserve when purchasing a cell phone.”

AARP said New Yorkers strongly supported safeguards for cell phone subscribers in a 2004 survey.

According to an AARP press release, the Assembly bill would require cell phone companies to disclose fees, surcharges and taxes to consumers before they buy cell phone services.

Wireless companies would also have to provide an estimate of their total monthly bill, and allow consumers to cancel their cell phone contracts 15 days after receiving the first bill without any penalties.

This requires cell phone companies to provide more detailed coverage maps of where the phones will work; and disclose to customers the cell phone’s enhanced 911 capabilities.

“The only real opposition to this bill is the cell phone industry, which is working to keep New Yorker’s from a much needed law,” Aronstein said.

“This law simply requires the industry to abide by many of the components of its own voluntary code—it’s the right thing to do.”

The Better Business Bureau, according to AARP, reports nationally more complaints about cell phones than any other business in 2004 and 2005.

According to the New York State Consumer Protection Board, cell phones are the second most complained about industry in the state.

A similar cell phone consumer protection bill has been introduced in the New York State Senate by Sen. James Wright, chairman of the Energy and Telecommunications Committee.

Wright describes himself as a conservative independent. AARP said it supports this legislation as well.

A cell phone consumer bill is also pending in the Massachusetts legislature.

Earlier this month, the California Public Utilities Commission scrapped a 2004 rule designed to protect wireless consumers against abuses.

Since then, the Commission replaced it with a new rule that will attempt to do the same through beefed-up enforcement and education.

Source: RCR