California Offers Cellular Bill of Rights
JeremyALogan writes "The Feature has an article about The California Public Utility Commission's approval of the first cellular customer Bill of Rights in the US. The Bill enables consumers to cancel their wireless contracts within 30 days of signing on. It also forces carriers to clearly state their rates as well as critical contract terms in normal size print on their websites (no more fine print). Companies will no longer be able to lump "recovery fees" in with taxes or other government fees on bills." You can imagine the joy with which the cellular companies have meet this prospect. Court challenges will be ensuing soon.
On the other hand, I've got to agree with the Governator, if for different reasons. I'm not sure if this is within the power of the commission that did it, for whatever benefit. This kind of power creep is exactly the kind of thing citizens should oppose.
But then again, there is no way that bought and paid for state government would ever pass such consumer protection.
Overall, I'd call it good with reservations.
"Enough of this wretched, whining monkey life." -- Marcus Aurelius, _Meditations_, Book 9, 37
big business is never honest? I mean, these provisions are obviously there to help the customer know what product their buying into.
Why do the cell phone companies feel like they need to hide this stuff in small print? People respect a company that is, well, respectable. I'd feel happier to buy a cell if I know *exactly* where i'm going to get charged and how much that charge is.
The cell phone companies should back this clarity.
Simon.
...a Bill of Rights for the rest of us?
Sheesh, evil *and* a jerk. -- Jade
Is it just me, or does anyone else ever go into the SprintPCS store feeling like they are visiting a used car dealership? Besides the clientelle that always seem to be there (people arguing about roaming charges, people 90 days past-due on their bill, someone wanting to cancel service because of a divorce, etc.) the staff almost always has this shady look to them.
About the only place I hate worse than the SprintPCS store is the stupid sunglass counter at the mall.
It's about damn time that the government step in to regulate how these kinds of companies do business. This is actually helpful -- and I'd be willing to bet that in the long-term this kind of regulation actually *gasp* helps cellular companies.
The surest sign of intelligent life in the universe is that none of it has tried to contact us. -- Calvin & Hobbes
Isn't it beneficial to the companies if their customers feel they're safe buying a product? If people can buy a phone knowing that the price advertised is the price they're going to pay, surely they'll be a lot happier about buying it. The only problem with doing this before is that if one company did it, their competition would hide their real prices, making it look cheaper.
I don't understand what the problem is... I just signed up with AT&T and got a FREE $290 flip phone plus six FREE months of UNLIMITED calling, INTERNET access on my phone and all sorts of cool arcade games to play on my cellphone. Yeah they did ask me for my bank account information and two major credit cards but this was only to ensure that I "qualified" for their great free offer. Sure there was a long spiel about rates after the six months but I just plan on cancelling then and looking for another free six months. LET THE SUN SHINE DOWN ON SUCH GREAT OFFERS, THEY MAKE ME FEEL SO SPECIAL. :) :) :)
:P)
(j/k of course
You can imagine the joy with which the cellular companies have meet this prospect.
Actually, I don't see why not some of them would welcome it. If their comptitors' terms have more obnoxious, obfuscated and hidden costs, they should stand to gain from it.
Kjella
Live today, because you never know what tomorrow brings
I hereby declare that my cells have the following rights: 1) The right to undergo mitosis, and, under certain conditions, meiosis. 2) The right to unfettered DNA replication. 3) The right to splice and edit mRNA transcripts without governmental interference. 4) The right to protect themselves from any invading threat, be it bacterial, viral, or merely proteinaceous, using any means that have been made available through evolution. 5) The right to secrete phospholipid bilayers. 6) The right to enclose all genetic material within a nuclear envelope.
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As long as their competitors must play by the same rules, it shouldn't matter, right? (But they probably will fight it tooth and nail anyway)
My rights don't need management.
I especially like the part about recovery fees. The wireless companies need to be held accountable, and people need to see what they're paying for. It's like Verizon charging $0.44/month for TouchTone service. Either offer it or not, but don't nickel and dime your customers to death.
I hope other states follow California's lead, and then maybe there can be some sanity in the wireless industry.
There is no sig, there is only Zuul.
Being a Californian who's had landline and cell service for a while now, I have to say that the only thing which constantly tweaks me is the fees. 6 years ago when I got my first landline, basic service was 10 bucks a month, flat fee (for local calling, anyway). Now it's closer to 20 bucks a month. The same thing applies for cell service. Even with my government discount, I still pay close on to 10 bucks a month extra in fees. I asked a customer service rep once if I could have a certian fee removed, because I didn't have any interest in using the service for which the fee apparently paid for. She of course said, "I'm sorry, but we can't remove that, everybody has to have it.", which of course, begs the question why it isn't included in the base monthly fee in the first place, and of course the anser to that is marketing. I sometimes wonder why corporations get away with passing on fees to the consumer that they are supposed to pay as a cost of doing business. Anyway, I'm glad in a general sense that this is happening in my home state, but I wish they'd expand it to all fine print. Fine print ought not to be fine, it ought to be the same damn size as everything else on the contract. On the other hand, I'm pretty happy with my cell service. It really is funny to hear all those Nextel chirps, once you actually listen for them. They're everywhere!
It seems to me that a consumer can effect all of these "rights" for himself in just a few easy steps.
1. Read every contract you sign, even the fine print, even the one at Blockbuster Video. The folks in line behind you can deal with it and might learn something.
2. Read the billing information and know the law in your state, even if the state taxes are not seperated from the company "fees" on the bill your 3rd grade math skills can work it out.
3. If you don't like the way the company operates or conducts its billing, don't do business with it. People have lived for betweeen 5,940 and a billion years without cell phones them so far. You can survive with a landline if you don't want to get the "screw-job."
(Author's disclaimer - I live in a state with many miles of road that lack cellular service of any kind)
Trying to use sarcasm in text-based forums does not work.
In general they have done 3 things:
1 - Provide a standard 30-day out if the service is sub-par.
2 - Require transparent billing so that consumers are told all the additional fees that will raise the real cost of their mobile bills.
3 - Make sure the contract language is legible.
It creates a level playing field for all vendors and doesn't favor one over another. I don't see what the mobile providers have to complain about.
The Bill enables consumers to cancel their wireless contracts within 30 days of signing on.
That line alone is what I would like in my state. The fine print I can deal with because I actually read it. But I signed up with Sprint a year and a half ago (2 yr. contract) only to realize that the signal at my house was almost non-existant. And since I was planning on using the cell phone when I made long distance calls from home, the lack of signal ruined this. If I had a 30 day trial period I would have switched immediately.
Seems from the many "you can manage with landline" comments that the US isn't near to Sweden (and probably other northern Europe countries) in cell-phone usage. Actually, it's not uncommon here that young people skip the "landline" completely and go for cellular instead. Also, many companies are switching from stationary phones to exclusive use of cellular phones for the employees.
Is for a state to start cracking down on advertised prices which really aren't the advertised prices. From mail-in rebate prices ($799, after $300 mail-in rebates), which may be applicable to one per household, so really, you only get one of that price if you get it at all, to ads which include prices for a multitude of prices, details at store, wherein a person must purchase another item at retail to get the reduced price on the second.
Seriously, consumers need regulations against businesses when they purposely attempt to mislead to get sales. Let's start forcing business to print details of sales on the same media in the same print as the sales itself, and eliminate pricing after mail-in or non-instant rebates on any advertisement, including in store.
I'm glad California's helping consumers who get hit with hidden or hard-to-determine fees and locked into harsh contracts when the service ends up being horrible, but let's get more states helping with more problems!
Human nature is the same everywhere; the modes only are different. -- Earl of Chesterfield
On the other hand, I've got to agree with the Governator, if for different reasons. I'm not sure if this is within the power of the commission that did it, for whatever benefit. This kind of power creep is exactly the kind of thing citizens should oppose.
Yeah, but currently the power creep is from the cell phone companies. These restrictions look more like lemon laws than anything.
Ask yourself this: What if you bought a cell with a contract that said it had essential coverage, and it didn't (as often cell companies do)? What if you got crappy reception at your own home even though it clearly says that you are clearly in the footprint? What could you do?
The answer? NOTHING FOR A YEAR. Buy another contract and pray. Smells like bull to me.
Long, long ago in the United States, things such as electrical power, natural gas lines, phone service, and other major mass entities were declared utilities.
Cell phones, through daily use, are becoming more and more important to daily life, and although we have lived without them, we have also lived without electricity as well... so don't even argue that right now. Currently due to tricks that the entire industry uses, they are continuing to charge the same rates for an older technology that is more ubiquitous. The value and cost of cell is dropping. The prices are not. Does that sound like good trade to you? Cell phones, under certain circumstances should be regulated like any other utility, due to the fact that they are a necessity, and they are currently price gouging.
Simply put, if everyone makes you sign up for a year, then you are screwed. The power company CAN'T do that. The POTS phone company cannot do that to you. They are regulated. Granted they are regulated monopolies, but at the same time, if there are only a few major cell carriers left in a few years, you are in the same boat.
Yes, there are alternatives. You can buy cell packages in all different manners. However, if you want one with good coverage outside of an urban market where altrernatives are plentiful, you not only have to pay, and most likely you have to be restricted by contracts.
It is a service. You pay for it. All of the air conditioning services don't come over and tell you that you need to sign a year contract and pay whether you use your A/C or not. The plumber doesn't make you sign a contract. There is no fine print in a plumber. There is no automatic withdrawl, or shady account management.
These days cell telephones are important for the succesful completion of the vast majority of business tasks. Collusion, or restriction of cell phone services by the way of binding contracts or other such behaviors should be considered predatory practice, and it ultimately restricts free trade.
That is why you need some slight regulation. After all, this isn't price restricting... it just sounds like cell phone lemon laws.
I've got to agree with you despite the fact that some overly sensitive cell phone owners have modded you down.
:-)
Cell phones used to be totally out of reach to anyone below a certain income level. In the 80's and 90's, TV and movies turned the simple act of talking on a cell phone into a huge status symbol, to which the masses naturally aspired. Cut to 2004, and many more people can now actually afford this fantastic technology. Unfortunately, a huge percentage of new cell phone users are in EXACTLY the situation that the OP mentions: they want the status symbol even though they can't really afford it. Why should that surprise us in the days of rampant credit card debt and record levels of personal bankruptcy?
Just within the past month, I was in line at Safeway who was paying for her groceries with one of those newfangled food stamp debit cards so I knew she was economically challenged. But to my amazement, she was talking on a cell phone the whole freakin' time she was in line. Now there's someone who's well on the way to financial responsibility and welfare independence...
Meanwhile, as an IT professional who was permanently attached to both a cell phone AND a pager for 6 years, I was only too happy to finally reach a position where I could be rid of both. I now wear my unreachability as a badge of honor!
3000+ comments meta-modded. 0 mod points awarded.
Lesson for other meta-suckers: Don't believe the hype!
The problem is that the consumer is rarely in a position to negotiate a contract. It's take it or leave it. Go to the competition, if any, and you find that the objectionable parts of the contract are considered "standard industry practices", and are present in everyone's contract. That's why we have truth in lending laws, lemon laws, warranty laws and other laws that impose standards on the marketplace.
Mea navis aericumbens anguillis abundat
The Bill enables consumers to cancel their wireless contracts within 30 days of signing on.
Shouldn't that be something like within 10 days after the end of the first billing cycle? If the cell company is going to screw you, you won't know it until you receive your first statement.
Chip H.
Speaking of making the "recovery fee" for cell phones part of the regular monthly charge, instead of an "add-on", I think this should be true of e everything. I get so tired of agreeing to some service for a particular price, and being charge extra fees after the initial agreement. I don't care what expenses my local oil change place needs to pay for "shop fees" or "oil disposal", I should know exactly what I will be paying before I make a verbal agreement to have my oil change. I can think of a million other things in which this could apply.