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Cell Phone Consumers Win Court Victory

August 14, 2006

• How to Avoid Early Termination Fees • Site Offers Cell Phone Contract Swapping --- News • 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

Hidden fees on cell phone bills, often buried in the fine print of a contract, may soon become a little clearer to consumers.

In the latest battle to provide better cell phone consumer protections, a Federal Circuit Court in Atlanta has ruled that, contrary to FCC claims, states have the right to regulate how many of the "hidden" cell phone fees are disclosed on customer bills.

"The bottom line is that these hidden fees, unexpected and unexplained surcharges, result in higher than anticipated cell phone bills. It's hardly fair to consumers, especially older people on fixed incomes, many of whom buy their cell phone for safety reasons," said Lois Aronstein, AARP New York State director.

"Consumers deserve not only to know about these fees, they need to know where their phone works and have the right to receive their first bill before being locked into a contract that includes hefty penalties for early termination."

Aronstein said the ruling adds fuel to AARP's efforts in New York State to establish the strongest cell phone consumer protection and disclosure law in the nation.

The court ruling was in response to an FCC decision which preempted states from regulating the disclosure of extra items on cell phone bills, many of which are not mandated by any agency or law. AARP says the decision helps further state efforts to provide protections to cell phone consumers.

In New York State, legislation would require cell phone companies to disclose all hidden fees, provide consumers with better coverage maps, including where E-911 works, and allow people to cancel their contracts without penalty after they receive their first bill.

While the measure overwhelmingly passed in the State Assembly, the State Senate, under heavy pressure from the cell phone industry, failed to pass any cell phone consumer protection legislation. The Senate will have a second opportunity to pass the measure when they return to the Capitol in September.

The cell phone industry claims that state regulation will result in an increase in the cost of cell phones and services. AARP said it believes that passing the New York legislation will make the industry more competitive and responsive to consumers who would stay with a particular company because of service and quality rather than lengthy contracts with big early termination fees.

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