Last updated: July 18, 2008 - 8:28am
[Commentary] There are increasing rumors the Federal Communications Commission is about to quietly ram through new rules written by wireless phone industry covering those ubiquitous early termination penalties they charge. Under an all-but-laughable banner of protecting consumers, Verizon Wireless recently presented FCC Chairman Kevin Martin with a plan to take away the current regulatory and legal authorities of states over early termination fees (ETFs), effectively stifling current and future consumer lawsuits at the state level on ETFs. In exchange for this sweeping preemption of state authority by the FCC over ETFs and the accompanying sweeping away of billions of dollars in potential damages in consumer lawsuits, the wireless companies are giving up literally next to nothing. The biggest concession by the wireless industry would be a watered-down form of pro-rating of ETFs and the adoption of a short trial period during which consumers could cancel their long-term contracts without incurring penalties. None of the "concessions" offer much of anything new. Nearly all of the big wireless companies are already pro-rating their ETFs or plan to begin doing so soon, primarily due to pressure from consumers. Same goes for the trial period. The FCC will be acting against the consumers it is charged with protecting if it continues with any further such back room, below the radar shenanigans. The commissioners need to quickly and forcefully reject this legal bailout written by the wireless industry, for the wireless industry.
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