Cell phone companies are ripping off Californians. How?
- Service providers often promise customers excellent coverage in areas where their service is poor, or even non-existent;
- Customers purchasing a new phone mid-way through their current contract may not realize this triggers a new one to two-year contract to begin.
But try to get out of a contract and you pay early termination penalties of up to $200! From 2002-2004 alone, the United States Public Interest Research Group found that early termination fees cost US cell phone users more than $4.6 billion.
But why should consumers be bound by contracts when service providers fail to live up to their end of the bargain? For several months in 2004-2005 Californians had the right to a 30 day grace period to cancel after they signed up for new cell service. This was part of the Telecommunications Consumers Bill of Rights adopted by the state Public Utilities Commission. But soon after, the giant cell phone providers got the governor to make new appointments to the Public Utilities Commission, and it did away with this Bill of Rights, giving companies the green light to go back to their old ways of misleading their customers with great promises and inferior service - with no consumer right to cancel.
Now, a bill has been proposed in California - AB 2622 - that will give back to every consumer the right to try their cell phone service for 30 days before they're committed to long-term contracts with outrageous cancellation fees.
Protect your rights as a consumer by urging your state representatives to support this bill now. Call on cellular providers to live up to their promises!
Dear Decision-Maker,
I'm writing to ask you to vote Yes on AB 2622 (Ruskin). For several months in 2004 and 2005, Californians were protected from misleading promises on the part of cellular providers by the Telecommunications Consumer Bill of Rights. Customers had the right to cancel their contract during the first 30 days. Consumers had a reasonable amount of time to cancel if what they received turned out to be inferior to the service the company had promised.
The Public Utilities Commission recently voted to do away with the Bill of Rights. Major cell companies eliminated the 30 day cancellation policy as soon as the PUC gave them a green light to impose onerous conditions on their customers.
Most phone companies require customers to sign up for a minimum of one or two years and charge huge early termination fees. These termination fees are a major deterrent to phone competition. I believe that consumers should have a reasonable period of time to check out phone service and determine if phone reception and other conditions are as good a promised. That is why I am asking you to support Assembly Member Ira Ruskins bill, AB 2622, which restores a right that Californians had enjoyed - 30 days to cancel their contracts without outrageous cancellation penalties that lock them into long-term contracts.
Sincerely,
