Bill Targets Cell Phone Termination Fees

Sen. Amy Klobuchar (D-MN) introduced legislation Thursday that would set limits on the termination fees that wireless providers can charge their customers for cancelling their wireless contracts early. Under the bill, providers would be barred from charging an early termination fee that is higher than the cell phone discount the wireless company offered a customer to enter into a multiyear contract, required to pro-rate the early termination fees for consumers when they opt out of their contracts early, and required to provide "clear and conspicuous disclosure" of the early termination fee rates. Sens Russ Feingold (D-WI), Jim Webb (D-VA) and Mark Begich (D-Alaska) co-sponsored.