The Federal Communications Commission proposed on Thursday new rules to combat “bill shock,” which will require cell phone providers to send warning messages to customers who reach their monthly limits.
Bill shock means that consumers’ monthly bills were much higher than expected for their cell phone plan and that they had gone over their monthly limits.
The proposed FCC rules would require cell phone providers such as AT&T and Verizon to notify customers when they were about to incur roaming charges or go over rates that were not covered by their monthly plans, according to an Oct. 13 New York Times article.
Many U. Oregon students interviewed by the Emerald said they are on their family’s cell phone plans. When senior Georgia Hill and her family went over their monthly texting limit, it was a shock, she said.
“We switched to an unlimited plan,” Hill said.
Junior Roxanne Mayer’s family also switched to an unlimited plan to also evade monthly bill shocks.
“I would always go over (the monthly limit) and get a ridiculous bill,” Mayer said.
Unlimited plans seemed to be a good option for people who text a lot.
“Maybe to prevent surprise,” University junior Alice Scharf said, regarding unlimited plans.
Another option to prevent bill shock is a T-Mobile plan (and similar plans) that shut off a consumer’s phone when they go over their monthly limit.
Thirty million Americans, equaling one in six cell phone users, have experienced bill shock. More than half of the 30 million people surveyed by the FCC had a bill increase of $50 or more, but many of them did not receive notifications from their cell phone provider before being charged extra.
The Government Accountability Office released a report in November 2009 that found that 34 percent of wireless consumers had received unexpected charges on their bills.
Verizon Wireless is under investigation by the FCC for overcharging 15 million customers.
Verizon and other mobile providers are opposed to the FCC “bill shock” rules that would mandate how they communicate with customers, saying that companies already provide customers ways to track use of data, voice and text features, according to the New York Times article.
Cell phone providers are responding to the FCC’s and consumers concerns. On Monday, Verizon issued a press release announcing its new “express services” that aim to help consumers manage their online accounts. Verizon’s new “easy-to-use-tools” include easy access of a listing of frequent transactions involving customers’ bills, plans and devices, and can complete activities, such as viewing their bills.
The FCC wants wireless carriers to clearly inform customers of any tools they offer to let subscribers set usage limits or review usage balances. The agency is also considering requiring all carriers to give subscribers the option to cap their usage.
The FCC, which is encouraging consumer comments on the proposed rules for 30 days, had its chairpersons vote 5-0 last week to create the rules against “bill shock.”