Money Matters, Simplified.
FCC mulling new rules to curb mystery fees in phone bills
by Anter Prakash Singh - June 21, 2011 - comments
FCC is mulling new rules to curb the mystery fees included in the bills of consumers by phone companies.
The Federal Communications Commission (FCC) announced Monday that it is mulling new rules to curb the menace of mystery fees levied in the bills of consumers by phone companies, a move aimed at protecting consumers from the ‘bill shock’.
The fees usually ranging between $1.99 and $19.99, is called cramming in the industry.
FCC mulling rules to check mystery fees
FCC chairman, Julius Genachowski said that he is going to send the proposed rules to his fellow commissioners at the commission.
He said that the rules are, “focused on harnessing technology and transparency to empower consumers with the information they need to make smart decisions and to make the market work.”
A recent survey by the FCC found that around 15 to 20 million households receive inflated bills in the US every year. It was also found that only 5 percent of the consumers who got inflated bill were aware of the monthly charges added to their bill
Cramming has been present in the industry since decades but the complexity of the cell phone bills made it all the more easy for the companies to add these fees to the bill.
The FCC has also announced that it is going to impose a total fine of around $12 million on four companies for being involved in cramming.
FCC chairman said in a statement, “We found that each of these companies was charging thousands of consumers for a type of long distance service they never ordered or used, with each company billing consumers roughly $13 to $15 at a time. This resulted in the apparent overcharging of consumers to the tune of about $8 million,” added Genachowski.
The companies that have been fined are VoiceNet Telephone, Main Street Telephone, Norristown Telephone and Cheap2Dial Telephone.
Overcharging rampant in US
A recent survey by the FCC found that around 15 to 20 million households receive inflated bills in the US every year. It was also found that only 5 percent of the consumers who got inflated bill were aware of the monthly charges added to their bill.
As cramming takes place in mobile bills also, the FCC says that the proposed new rules will be applicable to both land line and mobile bills. Recently a class action suit was filed against 23 text message companies that were alleged to be involved in cramming in Washington, reported KXLY News.
FCC has recommended that consumers should examine their bills more carefully and in case of any doubt regarding any amount in the bill, should immediately contact their phone company. A complaint can also be filed with the FCC in such a case.