FCC Wants Answers On Early Termination Fees
The FCC is seeking information from Verizon Wireless about its recent decision to raise fees on some customers for terminating their wireless contracts early. In a letter Friday to Verizon Wireless Vice President Steven Zipperstein, FCC Wireless Telecommunications Bureau Chief Ruth Milkman said the commission would like a "a more complete understanding" of the firm's decision on the fees by Dec. 17.
In November, Verizon Wireless boosted the maximum early contract termination fee for smart phones to $350 from $175, according to the AP. Wireless providers often offer customers discounts on cell phones for signing multi-year contracts for service. Citing Verizon's recent move, Sen. Amy Klobuchar, D-Minn., and other senators introduced legislation Thursday that would set limits on the termination fees that wireless providers can charge their customers for cancelling their wireless contracts early.
Among the questions Milkman wants answers to include what information about the higher early termination fee (ETF) does Verizon Wireless provide to prospective customers, and when does it provide it. In addition, the letter sought information about the carrier's rationale for increasing the ETF for an "advanced device." Milkman also asked for information about reports that the company is charging customers a $1.99 fee for inadvertently accessing Verizon Wireless's Mobile Web, saying "we would like to better understand the terms and conditions of such access."
In a statement, Verizon Wireless said it only raised ETFs for new customers who purchase an advanced device. The statement added that, "They don't pay anything if they fulfill their contract obligations or purchase one of these devices at the unsubsidized price."
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