FCC proposes rules to help American mobile phone users avoid a "bill shock"

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FCC proposes rules to help American mobile phone users avoid a "bill shock"

2010-10-15 02:01:45 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- The U.S. Federal Communications Commission (FCC) on Thursday proposed a new set of rules which aim to avoid consumers from receiving unexpected charges on their bills, which are also referred to as a "bill shock."

The new set of rules would require mobile service providers to provide so-called "usage alerts" and related information that will assist consumers in avoiding unexpected charges on their bills.

According to the FCC, unexpected charges on consumers' bills are an increasing problem and indicate that current methods should be improved. According to an April-May 2010 FCC survey, 30 million Americans -- one in six mobile users -- have experienced a bill shock.

More than half those consumers saw an increase of $50 or more, according to the survey, but many were not alerted by their provider before they incurred the charges. The current tools in place to eliminate bill shock vary widely between service providers and type of service, and can be difficult to find. Most of the alerts that are offered do not cover all services or are not sent before the overage charges are incurred.

To address this challenge the FCC is proposing and seeking comment on rules that would seek to prevent bill shock. The proposed rules would require mobile companies to provide consumers with simple alerts before and when they incur overages, using technology widely available today.

The FCC filed a Notice of Proposed Rulemaking on Thursday. In this notice, the FCC proposes 'over-the-limit alerts' which would require customer notification such as voice or text alerts when the customer approaches and reaches monthly limits that will result in overage charges.

Second, the FCC also proposes 'out-of-the-country alerts' which would require mobile providers to notify customers when they are about to incur international or other roaming charges that are not covered by their monthly plans, and if they will be charged at higher-than-normal rates.

Finally, the FCC further proposes rules that would require clear disclosure of any tools offered by mobile providers to set usage limits or review usage balances. The FCC is also asking for comment on whether all carriers should be required to offer the option of capping usage based on limits set by the consumer.

The Notice also seeks comment on whether smaller providers and/or prepaid services should be exempted from these requirements or allowed extra time to implement them.

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