Consumer protections lagging for mobile payments, report says

Most cellphone and tablet users can purchase digital goods and charge them to their monthly bill or prepaid phone account, but buyers may not get the protections they need if something goes wrong with the transaction, a new report says.

According to an analysis by Consumers Union, the protections that consumers receive vary depending on their wireless carrier's policies and what's in their cellphone contract. "We found that consumer rights can vary widely between wireless carriers, and the protections carriers claim to provide are often nowhere to be found in consumer contracts," said Michelle Jun, senior attorney for Consumers Union, the nonprofit advocacy branch of Consumer Reports. Jun said consumers using mobile payments should get the same "strong protections" that they receive when making purchases with a credit or debit card. AT&T, Sprint, T-Mobile and Verizon Wireless said that they provided ample protections for consumers, but Consumers Union "found that the protections these carriers provide fall short" of what consumers get when they use credit cards and debit cards or when California consumers report a disputed charge on their phone accounts. In addition, Consumers Union said, many of the protections that wireless carrier representatives described are not disclosed in customer contracts, making it difficult to know whether consumers can count on these safeguards when problems arise.