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Release date 12/09/2010
WASHINGTON, D.C. — Consumers Union, the nonprofit publisher of Consumer Reports magazine, today is sending letters to Congress and the Federal Communications Commission (FCC) to urge them to crack down on cell phone “bill shock” and other problems facing wireless-phone customers, pointing to the magazine’s latest issue on cell phones and plans.
The article in Consumer Reports’ just-published January 2011 issue describes how common it is for consumers to be hit with surprise charges on their wireless bills. In a September 2010 survey the magazine found 1 out of 5 respondents reported receiving an unexpectedly high bill in the previous year, often for exceeding the plan’s voice, text, or data limits. Half of them were hit for at least $50, and one in five more than $100.
The magazine cites the FCC’s recent proposal that wireless carriers be required to send customers alerts before they incur hefty overage fees. “We support that customer-friendly idea, a no-brainer that should be a snap for today’s sophisticated smart phones,” the magazine says.
Parul P. Desai, policy counsel for Consumers Union said, “The FCC needs to take action to ensure consumers are notified when they approach their usage limits. Consumers should consent to overage charges before being penalized.”
Other concerns mentioned in the Consumers Union letters to Congress and the FCC include provider practices that Desai says “continue to limit consumer choice in the marketplace.”
In the letter to Congress and the FCC, Desai wrote, “While competition and innovation exists among devices — especially smart phones — consumers still do not have the option of using these devices with their carrier of choice, which often results in consumers having to put up with continued poor service. Exclusive deals and early termination fees limit the ability of consumers to switch providers if they are dissatisfied with the service of their provider.”
In the letters to lawmakers and regulators today, Consumers Union is including the full Consumer Reports article, which includes satisfaction surveys for phones and plans, as well as tips for how to compare products and save money. The following is the text of Consumers Union’s letter to the Senate, which is similar to its letters to House members and the Commission. For copies of these letters and the Consumer Reports article, contact David Butler at Consumers Union at 202.462.6262 or dbutler@consumer.org.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2010 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2010 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.