In July of 2004 Attorney General Reilly, in concert with 32 other states’ Attorneys General, came to a legal agreement with the wireless industry to curb anti-consumer practices. The agreement, filed as an Assurance of Voluntary Compliance, was an important first step in protecting consumers. However, given the continued escalation of consumer complaints it is clear that stronger and more specific consumer protection must be adopted to curb billing, marketing, and service problems within the cell phone industry. The proposed Massachusetts Cell Phone Users Bill of Rights would take necessary steps in forcing the wireless industry to follow fair retail practices required of most retail services. This side-by-side comparison shows the major differences between the Attorney General’s agreement and the Massachusetts Cell Phone Users Bill of Rights.
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Attorney General’s Assurance of Voluntary Compliance (AVC) |
Massachusetts Cell Phone Users Bill of Rights (CPUBOR)
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Scope |
Only covers three cell phone providers: Cingular, Sprint, and Verizon |
Would apply to all wireless companies, ensuring that no consumers would be left out of the loop |
Advertising/Rate Disclosure |
Contains good rate and plan disclosure provisions but does not require a standardized format (like the Schumer’s box on credit card solicitations) allowing consumers to easily compare plans |
Requires rate and plan information be published by wireless providers in a “tabular format, in a clear and uniform manner, and in at least 10 point font”[1] |
Coverage Maps |
Requires wireless carriers to provide “maps depicting approximate wireless service coverage…to depict approximate outdoor coverage...on a nationwide and region wide basis…”[2] |
Requires that coverage maps contain “the maximum practicable level of granularity and shall be updated quarterly”[3]. The CPUBOR will force wireless companies to provide street level maps of service, not only nationwide and regional maps |
Service Quality |
Does not address dropped calls, dead zones and street level strength |
Requires wireless carriers to report statistics on dropped calls, blocked calls, dead zones, and street level strength to the Department of Telecommunications and Energy (DTE) so that this information can be relayed to consumers |
Trial Period and Termination Fees |
Provides for a 14-day trial period, which within there is no early termination fee. The AVC requires that cellular providers refund any activation fees if service is cancelled within 3 days |
Gives consumers a trial period of 30 days after the subscriber has received the first bill to cancel service. Consumers would not incur early termination or activation charges. Consumers would also get a prorated refund for handsets. This allows consumers to make sure they are getting what they are promised, with no surprise fees, and ensures the quality is adequate |
Charges vs. Taxes |
Requires them to separate out discretionary, cost recovery fees from real taxes and fees |
Requires them to separate out discretionary, cost recovery fees from real taxes and fees |
Complaints |
Requires wireless carriers to have a toll free number and requires carriers to “respond within a reasonable time and in good faith…”[4] |
Requires the DTE to establish rules for resolving disputes between carriers and consumers. Carriers are prohibited from terminating service until complaints are resolved |
Enforcement |
The Attorney General can enforce through legal action. AVC does not allow for consumer right of action |
Enables consumers and the Attorney General the right to sue under section 93A as well as giving the DTE the authority to impose fines for non-compliance |
Contract Length and Extensions |
No Provision |
Limits contract lengths to 1 year and prevents contracts from being extended without signed approval by consumers |
Contract Changes |
No Provision |
Requires carriers give subscribers written notice of any contract changes 30 days in advance of the changes. It also gives the subscriber an opportunity to terminate the contract with a pro-rated refund on the cost of any handset
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Roaming Charges |
No Provision |
Requires that roaming charges by billed within 60 days |
Itemized Bills |
No Provision |
Would require carriers to provide free itemized bills upon request |
Consumer Privacy / 411 Directory |
No Provision |
Requires consumers to provide express authorization to add his/her phone number to a wireless phone number directory. Wireless carriers are not permitted to charge subscribers for choosing not to be listed in any wireless directory |
Theft |
No Provision |
The subscriber would not be liable for costs due to theft if subscriber reports it promptly |
[1] Establishing a Cell Phone Users Bill of Rights. Sec. 117
[2] In the Matter of Cingular Wireless LLC. Assurance of Voluntary Compliance. 25 June, 2004. Sec. 28
[3] Establishing a Cell Phone Users Bill of Rights. Sec. 118.A
[4] In the Matter of Cingular Wireless LLC. Assurance of Voluntary Compliance. 25 June, 2004. Sec. 38