Business Practices & Corporate Accountability News

BOSTON—Consumer complaints about cell phones and service are skyrocketing, far outpacing the significant growth of the industry, according to a study released today by the Massachusetts Public Interest Research Group (MASSPIRG). Can You Hear Us Now? A report on how the cell phone industry has failed consumers, chronicles the proliferation of confusing calling plans, billing errors, hidden fees, dropped calls, spotty signal coverage, inadequate customer service and excessive contract termination fees. The report recommends that Massachusetts adopt basic, common sense consumer protections for cell phone subscribers. At the State House press conference, MASSPIRG called for the swift passage of the Cell Phone Users' Bill of Rights filed by Senator Jarrett T. Barrios (D-Cambridge) and Representative Steven Walsh (D-Lynn).

"We shouldn't be asking cell phone customers to accept bad customer service, confusing bills, and hidden fees," said Senator Barrios, who serves on the Joint Committee on Consumer Protection & Professional Licensure. "It's time for us to adopt a strict bill of rights that will force companies to treat customers with respect and openness."

In an informal survey of almost 900 of their members, MASSPIRG found that 68 percent of respondents reported having problems with their cell phone service including lack of coverage, dropped calls and poor sound quality. Additionally, of those surveyed, 35 percent said that early termination fees prevented them from switching providers.

"I have spent over 50 hours with various customer service representatives and suffered 3 disconnections over erroneous bills and still haven't had some of the errors corrected. I do not have problems with my other bills, I am an accountant and very precise. I have yet to have a cell phone company who is good from the start," said David Granier of Waltham, who has used 2 cell phone companies; AT&T and T-Mobile.

Among the industry shortcomings highlighted in the report are the widespread use of vague and misleading marketing, poor billing practices, a lack of customer service and the aggressive use of extended contract periods and high termination fees designed to tie consumers down and make it difficult to drop or change providers. Because the Federal Communications Commission (FCC) has refused to enact even the most basic consumer protections, MASSPIRG has joined forces with Barrios and Walsh in pushing for a Cell Phone Users' Bill of Rights to ensure that the cell phone industry is "governed by basic consumer standards".

"There are too many people that are unhappy with their wireless service. I have received numerous complaints from my constituents regarding their displeasure with a range of cell phone issues and felt a change was needed. I am hopeful that the Cell Phone Users Bill of Rights will remedy these complaints by requiring better disclosure in contracts, limiting the dreaded yearly contracts to one year, and making service quality for each company public to better inform consumers, " said Represenative Steven Walsh, the House sponsor of the bill.

"The industries' response to consumer complaints has been so deafeningly silent you really can hear the pin drop" said Deirdre Cummings, MASSPIRG's consumer program director and author of the report.

Massachusetts consumers need a loud and clear answer to their cell phone problems. The cell phone users' "Bill of Rights" includes the following provisions:

- Carriers should obtain customers' express permission prior to making cell phone numbers public. They should not charge a fee for keeping the number private.

- All wireless contracts and marketing materials should clearly spell out the terms of the contract in an easy-to-read, standardized format. The disclosures should be made available and accessible to consumers comparing prices and services among competing carriers. Cell phone companies must provide consumers with coverage maps that are as accurate as current technology would allow.

- Consumers should be able to dispute billing errors through the state utility commission. Providers should not treat the disputed portion of the bill as late or shut off service for non-payment if a complaint is pending with the state.

- The state utility commission should monitor service quality. Data should be collected and made publicly available so consumers can compare signal strength, dropped call counts and dead zones across carriers.

- Consumers should have a risk-free trial period during which they can cancel any new service after receiving their first bill, without incurring the high contract cancellation fees, currently ranging from $150-$275. This trial period would give consumers time to evaluate whether the cell phone service works where and how it was promised. Consumers should have 30 days to cancel a contract after receiving the first bill so that they may verify representations regarding the cost of service.

- Contracts should be for no longer than one year, with an option for renewal. Any material change to the contract must be provided to customers in advance, with an opportunity to terminate contract with a pro-rated refund of the charges they paid for purchasing a phone for the carrier's network and no early cancellation charge. Contracts can not be automatically extended without the customer's permission.

The Report also includes a cell phone shoppers' guide to help consumers evaluate and compare cell phone companies and services. For the full report, www.masspirg.org.