Subject: [NEXTEL-1] California Bill Would Give Consumers 30 Days to Cancel Cell Phone Contracts

From: Marcel <[email-masked]>
Date: Tue, 13 May 2003 14:29:02 -0400

California Bill Would Give Consumers 30 Days to Cancel Cell Phone Contracts

A bill that would give California consumers the right to cancel cell phone service
contracts without penalty passed the state Senate on Monday. Under the bill,
introduced by Sen. Debra Bowen (D-Redondo Beach), consumers would pay
for airtime used prior to canceling the service, and for any wear and tear to the
cell phone, but would not have to pay a cancellation fee. Wireless companies
say the cancellation fees help them recover the cost of the free or discounted
phones that sometimes come with calling plans. Some of the companies
already allow customers to cancel contracts without penalty within two weeks
of signing up for service. Customers usually know within four or five days
whether they will be satisfied with the service, a CTIA spok

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Posted on Tue, May. 13, 2003

Proposal would give cell users 30 days to cancel
STATE PROPOSAL IS `A GREAT LEVELER' FOR CONSUMERS
By Michael Bazeley
Mercury News

Cellular-phone users dissatisfied with service quality would have 30 days to cancel their
contracts -- without penalty --
under a bill that passed the state Senate on Monday.

Consumers would have to pay for the minutes used during the 30-day period and for any
wear-and-tear on the
telephone itself. But they would not be liable for early termination fees for canceling
their contracts.

The bill, SB 128, now goes to the state Assembly.

``Since most wireless service plans require you to sign a one- or two-year contract, a
30-day right of rescission is more
than reasonable,'' said Sen. Debra Bowen, D-Redondo Beach, ``especially considering DVD
players, toasters and most
other products come with a mandatory 60-day warranty.''

Wireless companies typically require new customers to sign one- or two-year contracts that
include hefty early
termination fees. Industry representatives say they need the agreements to recoup the cost
of free or discounted
phones that often come with calling plans.

But many consumers have complained of ``dead zones,'' dropped calls and being unable to
use their phones at places
they need them most.

``We think it is an outstanding bill,'' said Regina Costa, an analyst with the San
Francisco consumer group The Utility
Reform Network. ``It's a great leveler for consumers. The way it is now, you're locked
into contracts, but the companies
don't deliver on their promises.''

Many wireless companies such as Cingular and Verizon already offer money-back guarantees
-- typically about two
weeks -- that they use to lure customers. Industry representatives said customers rarely
need more time than that to
decide whether cellular service meets their needs.

``That's important information that the consumer tends to figure out pretty quickly,
usually in four to five days,'' said
Travis Larson of the Cellular Telecommunications & Internet Association.

State regulators have been putting increasing pressure on wireless companies to deal with
customer service issues.

The Public Utilities Commission is drafting a ``Telecommunications Consumer Bill of
Rights'' that, among other things,
would require wireless carriers to disclose extensive rate and service information and
give consumers the right to cancel
cellular contracts without penalty within 30 days.

Also, the PUC is investigating Cingular Wireless for alleged service quality problems and
marketing practices that it says
may have violated state laws and commission regulations.

One consumer advocate called the Bowen bill a good ``incremental step,'' but said it does
not go far enough to
address consumer complaints.

Michael Shames, executive director of the Utility Consumers Action Network in San Diego,
said he expected stronger
consumer protections to come out of the PUC.

The Bowen bill ``doesn't address the underlying problem,'' Shames said. ``It only deals
with new customers, not
existing customers whose service has deteriorated.''

A Bowen staff member agreed that the bill was limited and said the lawmaker introduced the
legislation in case the PUC
failed to take action.

http://www.bayarea.com/mld/mercurynews/business/5848959.htm