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New York Considers Tough Cell Phone Consumer Protection Law

By Mark Huffman
ConsumerAffairs.com

May 2, 2006

• How to Avoid Early Termination Fees • Site Offers Cell Phone Contract Swapping --- News • Verizon Wireless To Increase Termination Fees to $350 • Verizon Wireless Revamps "Exclusive" Handset Deals • Sprint Text Messaging Tax Suit Dropped • Senate Committee Investigates Cell Phone Contracts • Senate Committee To Investigate Cell Phone Contracts • Judge Rules Sprint Termination Fees are Illegal • Verizon Pays $21 Million to Settle Termination Fee Lawsuit • Washington Power Grab May Be Price of Lower Cell Phone Termination Fees • U.S. Cellular Settles 'Free' Phone Complaint • Cell Phone Industry Losing Its Treasured Arbitration Clauses • Wireless Firms Face Pressure On Termination Fees • Verizon, FCC Cook Up Termination-Fee Plan • FCC Not Ready to Pry Open Wireless Networks • Sprint Removes Three Fees, Adds Two New Ones • Sprint, T-Mobile Prorate Termination Fees • AT&T Changes Contract Policy • California Supreme Court OKs T-Mobile Class Action • Verizon Wireless Changes Contract Policy • FCC, Congress May Limit Cable, Cell Phone Termination Fees • Cell Phone Consumers Win Court Victory • Text Messaging Charges Surprise Cell Phone Users • Cell Phone Customers Held Captive by Termination Fees • Poll Finds Cell Phone Users Want Stronger Consumer Protection • Michigan Challenges One-Sided Cell Phone Contracts • New York Considers Tough Cell Phone Consumer Protection Law • California to Try Again With Telecommunications Bill of Rights • California Suspends Wireless Bill of Rights • California Adopts Wireless Consumer Bill of Rights

New York would offer the strongest cell phone consumer protections in the nation, under proposed legislation getting the strong endorsement of a number of consumer groups.

The fight for the Cell Phone Consumer Protection Act is heating up as several groups publicly urged legislators not to bend to industry opposition and pass the legislation this year.

"The cell phone industry has now out-ranked used car dealers as the most complained about industry in the nation -- we think consumers deserve and need better protections," said Lois Aronstein, AARP New York State Director.

"With older New Yorkers mostly getting cell phones for use in an emergency, AARP strongly believes this legislation is a step in the right direction."

The bill is a model for possible national legislation, requiring disclosure of all hidden fees and allowing people to cancel their contracts after they receive their first bill without penalty, consumer advocates say.

The cell phone industry is heavily opposed to the legislation.

The measure would require cell phone companies to:

• disclose fees, surcharges and taxes to consumers;
• allow consumers to cancel their contracts fifteen days after receiving the first bill without penalty;
• require cell phone companies to provide more detailed coverage maps of where the phones will work; and
• disclose to customers the cell phone's E-911 capabilities.

AARP members from across the state were joined by representatives from the New York Public Interest Research Group (NYPIRG), Public Utility Law Project (PULP), and representatives advocating for safer college campuses for women. Assemblywoman Audrey Pheffer, chair of the Consumer Affairs and Protection Committee, and Assemblyman Daniel O'Donnell, sponsor of the Assembly legislation, lent a powerful voice to the need for stronger consumer protections for New Yorkers using cell phones.

"As chair of the Consumer Affairs and Protection Committee I recognize that many consumers have concerns with their wireless service," said New York Assemblywoman Audrey I. Pheffer.

"The committee has been working diligently this session with consumer advocates, as well as the wireless industry, to better understand the issues at hand and to find possible legislative solutions to these concerns brought forth by consumers," Pheffer said.

"The need for consumer protection in this unregulated industry is critical. Cell phone users should know their rights as a consumer will be enforced under this legislation," said Assemblyman Daniel O'Donnell, sponsor of the Cell Phone Consumer Protection Act.

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