Federal Communications Commission Chairman Julius Genachowski told attendees at the Center for American Progress on Wednesday that the FCC intends to take proactive steps to empower consumers with mandated alerts and other tools to avoid cell-phone billing shocks. According to a recent FCC survey, more than 30 million American adults with a personal cell phone said their bill increased suddenly from one month to the next — even though they had not changed their calling or texting plans.
More than half of those consumers saw an increase of $50 or more, but few were alerted by their provider — either before or after the bill arrived, the survey found. Moreover, unexpected overcharges can be devastating for retired Americans like Robert St. Germain of Dover, Mass., who received an $18,000 bill after his free data downloads expired without warning.
“You’ve got people receiving 300-page phone bills,” which “gives you a pretty good sense of how consumers are entering uncharted waters as the digital revolution gathers steam,” Genachowski said Wednesday. “The FCC role here is to be a cop on the beat protecting and representing American consumers, giving them a voice in the process.”
Alerting Customers
Bill shock typically happens when a subscriber is charged for unknowingly exceeding his or her allotments for voice, text or data, or gets hit with unexpected roaming charges, Genachowski noted. In response, the FCC intends to hold an open meeting Thursday to consider new rules requiring U.S. mobile carriers to notify their subscribers when approaching — or reaching — any monthly limits that would result in additional charges.
“I expect that we will be moving forward on ways to prevent bill shock in a simple, practical, non-prescriptive manner, using technology widely available today, and in a way that encourages innovation in informing consumers,” Genachowski said.
The CTIA trade association representing…