Rockefeller Reintroduces Landline Anti-Cramming Legislation
Three Democrats on the Senate Commerce Committee reintroduced legislation Wednesday they said would protect consumers from unauthorized third-party wireline charges known as “cramming” (http://1.usa.gov/1a55s9R). The Fair Telephone Billing Act, authored by Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., would prohibit unauthorized third-party charges on wireline bills with exceptions for bundled services or long distance and collect calls. The bill was cosponsored by Sens. Amy Klobuchar, D-Minn., and Richard Blumenthal, D-Conn.
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"We're shining a spotlight on devious efforts to trick consumers through a web of misleading and confusing phone bill charges,” Rockefeller said in a news release. “I wasn’t tolerant of this in the past and it’s not going to happen in the future, period. Consumer predators are now on notice -- phone bills are no longer an easy way to stick consumers with bogus charges.”
The legislation would build upon the FCC’s cramming rules that require phone companies to notify subscribers at the point of sale, on each bill and on their websites of the option to block third-party charges from their landline bills (CD April 30 p7). A 2011 committee report said wireline customers pay $2 billion every year in “cramming” related charges, in which they're billed -- often on behalf of third parties -- for products or services they either didn’t order or don’t want (CD July 14 p5).
The bill would “prevent fraudulent phone fees from being disguised as a tax or some other common charge,” Blumenthal said in the news release. “Third-party companies should not be able to nickel and dime consumers for charges without their consent,” he said. “This legislation will help crack down on cramming and I will continue to work to ensure consumers have access to clear, transparent bills free from hidden charges,” said Klobuchar.
In addition to the legislation Rockefeller sent letters to four wireless carriers, AT&T, Verizon Wireless, T-Mobile, and Sprint, asking about each company’s policies on wireless cramming (http://1.usa.gov/16dX4SM). Rockefeller said he was appreciative that wireless carriers have refunded many subscribers who found cramming charges on their bills but said “customers deserve assurance that carriers are evaluating and addressing instances where cramming has allegedly occurred,” the letters said. Rockefeller asked carriers specific questions about their efforts to protect consumers from cramming and address allegations that “double opt-in requirements” are being foiled by some third-party vendors, among other questions.