FCC Plans To Stop Cell Phone Bill Mystery Fees
GovTechGuy writes "FCC chairman Julius Genachowski said Monday that his agency is going to make it harder for mobile carriers to hit customers with mystery fees on their monthly bills. The practice, known as 'cramming,' typically involves charging customers between $1.99 and $19.99 per month for services they either didn't use or didn't request. The FCC announced fines totaling nearly $12 million against four carriers for cramming last week."
A co-worker has been vocal about this practice. Makes me all the more smug with my el-cheapo pay-as-you-go program.
A feeling of having made the same mistake before: Deja Foobar
Let's see. $12 million in fines, total, eh? Verizon Wireless at the end of 2009 had around 90 million subscribers. Cram a $0.99 charge onto each, take into account the fines, and...yes, profit!
A hero is someone who knows when to run away. I am a hero. -Trent the Uncatchable
The fines will mean nothing if the carriers make more money than what the fines cost. They need to put some people in jail and this shit would stop.
This is one of the major issues that has caused most of my family and those I advise on cell phone purchases to go with pay as you go phones. As the one holdout who needs a smartphone with major (asshole) network support I've grown so sick of the unknown and seemingly random small fees attached to my monthly bills. The scam is not only the fees themselves, but the god-awful wait time by most providers when it comes to waiting on hold to reach the provider and question or dispute a charge. They know damn well that for $1.99 a month most people won't tolerate being on hold for 15+ minutes and thus use it as a quick way to yet again fuck us over. Yet another reason to hate the U.S. cell phone industry with a passion. If the FCC is serious about this all I can say is suck it telecos.
Given the rampant and pervasive monopolistic practices of the soon to be 2 carriers, I just can't get that excited about such a small fine. Such intentional fraud should result in jail time for whoever authorized such actions.
now when am I going to stop being charged for people sending me spam SMS messages? I see that issue as a sure sign that the FCC is fully captured by the industry, and small fines like this are just window dressing to keep the irate masses at bay.
In Canada, there are this 'CRTC fee', '9-1-1 fee' and 'system access' fee. Canucks have no way out with only a bundle of national operators that could foster competition.
Doesn't the gvmt still have a $6/month Algore fee to "wire inner city classes to internet?"
Now if they can stop bandwidth overage charges, ( or remove caps completely ) and force everyone to be compatible with each other like it was with wired phone, so you can keep your phone...
---- Booth was a patriot ----
Those fees aren't the mystery fees being described here. Those fees are legal and described in advance.
If you don't get charged the 911 fee, you've got lucky somehow.
These are fees for services you didn't even want or sign up for.
As a slightly different example here, our corporate cell phone bills frequently have charges for calls to our my-5 numbers. We read through the bills every month and call to complain about those. Almost every month they try to bill us for calls that their own service claims are free, which they apologize for on the phone profusely of course.
I might add, I don't understand people who pay their bills without reading them.
- Michael T. Babcock (Yes, I blog)
now when am I going to stop being charged for people sending me spam SMS messages?
When you pay them $10 a month to turn off the service. Hell of a deal. I am going to get the neighbor kid to pay me $10 a month to not punch him in the face.
would like to see new rules mandating prepaid data plans be offered at rates competitive with contract rates for anyone who has purchased their phone outright or who's contract period is ended. (and requiring phones be offered unsubsidized/unlocked at any place selling the phone subsidized)
Snowden and Manning are heroes.
They need to start offering large rewards (millions of dollars) and whistleblower protections for anyone who can offer proof of dishonest business practices and make sure mandatory jail time is included for those found guilty.
I suspect it wouldn't take long for a large number of corporate execs to end up in jail. That and there would be a few wealthier email admins.
I ain't holding my breath.
File under 'M' for 'Manic ranting'
yeah, 12 Billion is more like it. I'm not sure that is even enough.
Because most businesses are not in the habit of defrauding their customers.
Hans
Described in advance? Are you kidding? Before I bought my phone, I tried to get any sort of ballpark estimation or description of exactly these sorts of taxes and fees, and neither AT&T nor Verizon could do it.
From TFA:
BS. Sheer nonsense. The problem is not that the bills are hard to "understand". The problem is the cramming in the first place. Remove the ability for any arbitrary fly-by-night op to place charges on anyone's bill, if they know their phone number, and the problem will mysteriously disappear.
Cramming takes advantage of social engineering. "Wanna a HOT NEW LADY GAGA ringtone!!!! Just type in your phone number on our web site. (tiny font: $9.99 per month charge applies)".
And that's how a "simple-minded" acquaintenance of mine ended up with $40 bucks worth of charges on her bill, some years ago.
Get rid of the ability for anyone to cram charges, without a written notice by YOU, to YOUR cellphone carrier, and there's no more cramming. Of course, the cell-phone carriers will fight tooth and nail. I'm sure they make a nice profit skimming off their share of all the crammed charges.
Hello:
As a foreigner i'd like to point that you fellow USians are pretty inconsistent.
Isn't guuvernmeeent regulation evil?
What about "let the market sort it out"
etc, etc
Please explain
Best Regards
AC because i don't post here often enough to justify an account...
There's a local company here in AZ that's guilty of the practice. They've changed their name from Cylon to Jawa. I interviewed there a couple times before figuring out how sleezy their business model was. They make big $ but it wasn't worth selling my soul for it. Jason Hope, I'm looking at you.
Everyone makes mistakes. Assuming there will be no mistakes is at your own peril.
I read all my bills; it only takes a few minutes.
- Michael T. Babcock (Yes, I blog)
I refer to the Subscriber Line Fee, a variable charge that occurs each month with no explanation or justification as to why the amount is what it is. In addition, compared to the service fee, the Subscriber Line Fee is anywhere from 50 to 100% of the nominal charge. And yet, not only does the FCC turn a blind eye to this, they actually authorize it which gives the telcos a license to charge whatever they want, without having to disclose the existence or average amount of these charges prior to having customers bound into a service contract. Way to go FCC.
Oh, for a moment there I thought they decided to force carriers to cover all fees from the bill. You know, so it'd be one total, not total + FCC Mystery Line Fee, USF Fee, blah blah blah.
Either that, or soon we'll see "Employee Handwashing Fee", "Cleaning Surplus Reimbursement Surcharge" and "Poison Control Center Fee" being imposed at fast food restaurants.
Oh well. I can dream...
Hyperom.com
I remember a few years ago selling Verizon phones. I saw Verizon bills seemed to have higher fees than other carriers. They all had the 911 fee and a few others, but I found Verizon had an additional 'recovery' fee without any real description of what it was paying for, and it was on the order of 10-20% of the advertised rate.
By advertising say $59.99 for a service and then immediately taxing their own service at 10-20% for an unexplained, unjustified reason, it appeared they were simply charging more than they advertised and burying the costs in fees to produce a lower advertising rate. I was surprised to see it, thought it was pretty dirty, and always had expected to see a class action suit, but it never came.
This may not apply to cell services but I seem to recall when I was younger there was tax on my land-line phone bill that was enacted to pay for the Spanish-American war. Is that still there?
I'm prepared to believe that the wireless companies do their own gouging of customers, but cramming is about third-parties charging your account. What this settlement aims to do is hold the carriers responsible for those third-party charges. And they should be held responsible, but this isn't quite the same thing as the carriers just charging you random amounts themselves.
I might add, I don't understand people who pay their bills without reading them.
My guess... those people value their free time more highly than however much their utility companies are likely to overcharge them. If the charges are too high, they just don't pay it.
If "everyone makes mistakes" is true, then on the average, you should sometimes underpay and sometimes overpay. Since underpayment does not ever seem to be an issue, I have to classify these charges as "not a mistake" and instead as "a deliberate act to try to get customers to pay for something they did not use".
If you are not allowed to question your government then the government has answered your question.
Would be nice if someone would do go after crooked credit cards companies too. I'm sick of my wife's card repeatedly having account protection discreetly added without approval. Last credit card company did the same crap over and over again.
They have droid phones and everything down to cheap flip phones without a camera. $25 a month gets you 300 talk minutes and "unlimited" text/data without a contract. The best part is no hidden fees tacked onto that $25, just sales tax. Virgin uses the Sprint network so coverage is decent.
Only the State obtains its revenue by coercion. - Murray Rothbard
What pisses me off is that they charge $XX per month for their service and then add to that an itemized list of their normal business expenses, as if those don't count toward their monthly charges. When you go to a retail store, they don't advertise a $25 widget, then add $10 for their property taxes, business license renewal fees, fire district taxes, employee healthcare charges, etc. (Though in the US, it's normal to advertise prices without sales tax, which is bullshit.)
So why don't all of these fees and shit get folded into the advertised cost of service? These aren't taxes on me, the subscriber, they're taxes on the business providing the service. Why do they get to just hand wave all of that out if their operating costs?
If you want a vision of the future, imagine a youtube comments section scrolling - forever.
$12 million divided among 4 carriers? I bet they're all laughing. That's just a (very small) cost of doing business for these guys. Fines of $100 milllion per carrier would get their attention - much less than that and it's hardly even newsworthy, much less an effective deterrent.
'The Economy' is a giant Ponzi scheme whose most pitiable suckers are the youngest among us and the yet-unborn.
The FCC announced fines totaling nearly $12 million against four carriers for cramming last week.
No doubt the board of directors, afraid the stockholders would hear about these outsized fines, quickly went around the table to see how much they each had in their pockets.
$100 GoPhone.
I managed to get my iPhone to work on it, so it's all the "Apple Goodness" of the iPhone but without the nasty contract. I'll skate by your rules and say that the point of the $100 level is that the minutes last for a whole year. Very roughly converting "per call" rates vs your "half hour per month", it's a dead heat that the plan will last you exactly one year.
Plus you can relive the cheesetastic Meatloaf commercial.
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
AFT, SCIH, and FYPM. One is consumer friendly, the other two are industry. Can you gues what they mean? Honesty, with a presidential elelction just around the corner this is nothing but background noise. Since when do consumers, you and I, have any rights or protection anymore? Anything designed to protect consumers from unfair practices is always seen as anti-business and by extension in this economic situation anti-government. They rely on business more than the poor meak folk of course so it is what it is. I wouldn't expect anything from this other than higher prices and more consumer confusion. Nice try.
How about fining the Feds for "cramming" my fixed line bill?
Oh, wait, it doesn't work that way.
Big government pimps.
ctrc fee was gone many years ago, and telcos got sued for ~2 billion before they stopped this in Canada. if they are still charging this "system access fee" (was also banned as false) iirc, etc, you should speak to a lawyer asap, don't even talk to them until you do.
wonder if they are still charging some users that don't know about this. somehow, it would not surprise me
It's been more than a decade, and they're just now getting around to it. The FCC must be planning something really shifty if they're pulling their public relations Ace from their sleeve.
A WHOLE 12 Million!?
Shee-it. That'll learn em. They'll have to scam a whole 60k more people for one month.
This is a criminal case. It's theft.
I like this post http://tinyurl.com/4yn3fuq
Can we make them advertise the actual price. Not $X which really means $X + $4.99 "Line Fee" + $3.99 "Federal something or other fee" (not actually a tax or anything mandated by government) + $3.99 taxes + ...
Does it surprise you that government is more interested in money than protecting against crime? Government is a business, and like any business, their primary objective is profit.
A lot of them dropped the system access/crtc fees and replaced them with a slightly higher "compliance" charge.
"All that is necessary for evil to succeed is for good men to do nothing." - Edmund Burke
T-Mobile now has a "hidden" set of plans called "EvenMore PLUS". They had them on the website for awhile, but they recently took them down as they want to rook more people into buying their 2-year contract "EvenMore" plans, which actually aren't that bad if you're the kind who wants a high end Android phone and a lot to use. EvenMore PLUS however, is ZERO contract with the expected catch being that you have to bring your own GSM phone or buy one full retail. I have unlimited "everything", but if I recall correctly you get get 1000 minutes/month (w/free nights and weekends) for like $30-40 monthly, or 500 min/month (w/free nights and weekends) for $20-30, assuming no text and web. I pay about $70USD/month for Unlimited talk, unlimited text, "unlimited" (truly unlimited, but if you download more than 5gb they throttle you. However, no data roaming or overage fees! I've downloaded more than 10gb before without being throttled so I assume it isn't automatic but instead they have to "notice" you) data on my Nokia N900. All these plans have zero contract, and there's a cool generally-unknown feature where you can buy a phone from T-Mo at retail price and pay it in installments without interest. So if you buy a $500 Android handset, you can opt to have it billed at an additional $20, 50, 100 et.c.. per month with no taxes and without them trying to convert you to contract plan, which actually costs MORE per month.
For GSM, I think it is the best way to go at least for now - if ATT takes over, god knows what will happen but they'll need to honor current agreements at least. It also gets you a lot of features not present on Net10/TracFone etc...like unlimited nights and weekends and of course SMS and data use is available if you decide you need it later.
By pass the Telco's
Given what Apple asked for in the mid 90's Public Radio bandwidth for 10Km ranged wifi routers and we could easily have a roof top cell phone grid and any long distance calls could be handled my Ma and Pa ISP's for Internet connections for long distance calls.
The only reason we did not get this in the 90's was Al Gore was the Internet destroyer, when he was in office.
Someone would get my bank to stop cramming me with misc fees that no one at any branch can explain what they are for.
I am Bennett Haselton! I am Bennett Haselton!
My point about mistakes was to justify always reading one's bill. Once one always reads one's bill, one also notices these illegal charges.
In no way did I imply that these types of charges are mistakes, only that since mistakes happen, one should read one's bill. These charges are IMHO illegal and unethical.
- Michael T. Babcock (Yes, I blog)
Why do we still have to pay extra to make a call to someone 25 minutes away ?
"How this came about still boggles my mind, "
It's obvious. They intentionally obfuscated their billing to make it easy to hide such stuff.
Why should the Government benefit from this. Where the hell are the refunds with interest...enough to make it hurt them...essentially like a class action would.
Just another day in Paradise