PRINTER'S NO. 3989
No. 2647 Session of 2008
INTRODUCED BY GEORGE, BENNINGTON, CALTAGIRONE, FRANKEL, FREEMAN,
GOODMAN, GRUCELA, HORNAMAN, JOSEPHS, KULA, MUNDY, MYERS,
M. O'BRIEN, PARKER, SIPTROTH, K. SMITH, SWANGER, WALKO AND
J. WHITE, JUNE 18, 2008
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 18, 2008
AN ACT
1 Providing for disclosure of terms and charges of wireless
2 service plans, for billing policies, for service quality
3 monitoring, for wireless service plan modification and
4 termination and for enforcement.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Wireless
9 Consumer Protection Act of 2008.
10 Section 2. Findings
11 The General Assembly finds and declares as follows:
12 (1) Wireless service has become a replacement for
13 traditional telephone service for many consumers in this
14 Commonwealth.
15 (2) As wireless service is increasingly used and relied
16 upon by residential and business consumers, consumers will
17 increasingly depend on State authorities to apply and enforce
18 essential consumer protection applicable to wireless service
1 in a manner consistent with the role authorities have played
2 in ensuring consumer protection with traditional telephone
3 service.
4 (3) Many consumers complain that some wireless service
5 providers do not clearly or adequately disclose, in plain
6 language, the products and services for which charges are
7 imposed.
8 (4) Many consumers find it difficult to easily compare
9 the costs and attributes of wireless service offered by
10 different providers because of the lack of consistency in how
11 contracts for wireless service are presented.
12 (5) To make informed decisions in choosing between
13 wireless service providers or plans, consumers need clear and
14 concise wireless industry data that consumers currently lack.
15 (6) Wireless service providers typically require
16 customers to sign a contract for service for two years and
17 charge early termination fees when a customer ends service
18 before the expiration of the contract.
19 (7) Early termination fees are often levied at rates
20 that do not reflect the cost of recovering the monetary
21 amount of a bundled mobile device or any other expenditure
22 for customer acquisition, and some carriers do not prorate
23 the fee based upon when a customer terminates the service.
24 (8) Some wireless service providers do not make readily
25 available to consumers service maps with specific coverage
26 data. As a result, consumers may learn that the wireless
27 service for which they have subscribed does not meet their
28 needs only after they have signed a contract and have begun
29 using their mobile device.
30 Section 3. Definitions.
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1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Charges." Fees and taxes.
5 "Commercial mobile service." A mobile service that is
6 provided for profit and makes interconnected service available:
7 (1) to the public; or
8 (2) to such classes of eligible users as to be
9 effectively available to a substantial portion of the public.
10 "Commission." The Pennsylvania Public Utility Commission of
11 the Commonwealth.
12 "Subscriber." A person who has entered into a wireless
13 service plan.
14 "Wireless customer equipment." Equipment used on the
15 premises of a person or carried on a person, other than a
16 carrier, to originate, route or terminate information services
17 or telecommunications.
18 "Wireless service plan" or "plan." A contract between a
19 commercial mobile service provider and a consumer related to the
20 provision of commercial mobile service, including agreements
21 related to the provision of wireless customer equipment for use
22 with the service.
23 Section 4. Wireless service plan disclosure.
24 (a) Information required.--A commercial mobile service
25 provider shall disclose to a customer the following information
26 regarding a wireless service plan:
27 (1) A description of the terms of the plan, including:
28 (i) The duration of the plan.
29 (ii) The duration of any trial period included in
30 the plan.
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1 (iii) The number of minutes of service per month or
2 other period included in the plan and the method by which
3 the minutes will be calculated and assessed.
4 (iv) The terms of subsidizing any wireless customer
5 equipment.
6 (v) The existence of an early termination fee,
7 service initiation fee or other nonrecurring fee.
8 (2) A description of the charges for the plan and the
9 amount of the charges, including:
10 (i) Monthly charges, per-minute charges, roaming
11 charges and charges for additional minutes not included
12 in the plan.
13 (ii) Charges for long distance and international
14 calling, charges for directory assistance, charges for
15 incoming calls and charges for additional services, such
16 as text messaging services.
17 (iii) Charges for early termination, service
18 initiation or other nonrecurring events.
19 (iv) Any Federal, State or local taxes and any
20 regulatory fees.
21 (v) Any other charges for which consumers may be
22 assessed under the plan.
23 (3) Any other information the commission deems
24 appropriate for ensuring that wireless consumers are fully
25 and adequately informed about the terms and charges for a
26 wireless service plan.
27 (b) Timing.--A commercial mobile service provider shall
28 provide to a consumer in a clear, plain and conspicuous manner
29 the information required under subsection (a) prior to the
30 consumer:
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1 (1) entering into a new plan;
2 (2) modifying an existing plan; or
3 (3) renewing an existing plan for an additional period.
4 (c) Format.--The commission shall promulgate rules on the
5 format of printed or electronic disclosures of the information
6 required under subsection (a) and how consumers who receive plan
7 information verbally may receive printed or electronic
8 disclosures of the information.
9 Section 5. Early termination fees.
10 (a) No fee plan.--A commercial mobile service provider shall
11 offer at least one plan for which there is no early termination
12 fee.
13 (b) Subsidized equipment.--If a commercial mobile service
14 provider offers a plan with subsidized wireless customer
15 equipment, the provider shall offer to consumers the opportunity
16 to purchase subsidy-free wireless customer equipment in return
17 for the ability to secure service without a long-term plan at a
18 price no higher than a comparable plan offered with subsidized
19 wireless customer equipment.
20 (c) Proration of fee.--For a plan that has an early
21 termination fee, the early termination fee shall be prorated
22 over the duration of the plan in a manner that reasonably
23 relates the fee to the recovery of the cost of any subsidy the
24 consumer received when purchasing wireless customer equipment.
25 The early termination fee for a plan with a duration of two
26 years or more shall be reduced by at least half after one-half
27 of the plan's duration.
28 Section 6. Wireless service coverage maps.
29 (a) General rule.--A commercial mobile service provider
30 shall make available a map of the geographic area for which the
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1 provider is licensed to provide commercial mobile service
2 depicting:
3 (1) the outdoor service coverage area of the provider,
4 including the outdoor service coverage area of the consumer's
5 local market; and
6 (2) any known outdoor service coverage gaps.
7 (b) Specificity of maps.--A commercial mobile service
8 provider shall generate at least one map for each geographic
9 area required under subsection (a) that:
10 (1) uses predictive modeling and mapping techniques
11 commonly used by radio frequency engineers in the commercial
12 mobile service industry to depict approximate outdoor service
13 coverage based on signal strength for the applicable
14 commercial mobile service technology and signal strength
15 confidence levels under normal operating conditions on the
16 provider's network, factoring in topographic conditions and
17 subject to variables that impact radio service generally,
18 which shall be disclosed as material limitations in
19 commercial mobile service coverage depiction and
20 availability;
21 (2) is updated at reasonably regular intervals; and
22 (3) is in sufficient detail to identify:
23 (i) generally geographic areas where commercial
24 mobile service is not predicted to be regularly
25 available; and
26 (ii) whether a consumer is predicted to receive
27 commercial mobile service in the general geographic area
28 in which the consumer's primary residence is located if
29 prediction of reception in the area is feasible using the
30 formats specified under paragraph (1).
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1 (c) Disclosure to consumers.--Each commercial mobile service
2 provider shall provide to a consumer the map required under
3 subsection (a):
4 (1) upon the request of the consumer;
5 (2) when a consumer enters into a new wireless service
6 plan; and
7 (3) at such other times as the commission shall provide.
8 (d) Online access.--A commercial mobile service provider
9 shall make available the map required under subsection (a) on
10 the provider's Internet website.
11 Section 7. Billing policies.
12 (a) Separately stated charges.--A commercial mobile service
13 provider shall not list a charge on the billing statement of a
14 subscriber as a separately stated charge other than a charge:
15 (1) for telecommunications service or other service
16 provided to a subscriber;
17 (2) for nonpayment, early termination of service or
18 other lawful penalty;
19 (3) for Federal, State or local sales or excise taxes;
20 or
21 (4) expressly authorized by a Federal, State or local
22 statute, rule, regulation or order to appear on a
23 subscriber's billing statement as a separately stated charge.
24 (b) Format.--A commercial mobile service provider shall
25 provide that a bill sent to a subscriber for commercial mobile
26 service:
27 (1) is clearly organized;
28 (2) describes in plain language the products and
29 services for which a charge is imposed; and
30 (3) conforms to such formatting standards as the
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1 commission requires.
2 (c) Federal, State and local charges.--A charge specifically
3 required by a Federal, State or local statute, rule, regulation
4 or order to be collected from a subscriber shall be listed in a
5 separate section of a bill sent to a subscriber and itemized
6 separately in clear and plain language. Other charges shall not
7 be included in that section of the bill.
8 (d) Roaming charges.--Unless the subscriber otherwise
9 requests, roaming or other off-network charges associated with
10 any call for which a subscriber is charged a roaming or other
11 off-network charge shall be itemized on each bill provided to a
12 subscriber no later than 60 days after the call was placed. The
13 itemization shall clearly identify the date and location of the
14 call.
15 (e) Itemized bill.--A commercial mobile service provider,
16 upon the request of a subscriber, shall provide an itemized bill
17 to the subscriber at no cost.
18 Section 8. Service quality monitoring.
19 (a) General rule.--A commercial mobile service provider
20 shall file a semiannual report on the following:
21 (1) An assessment of the percentage of the licensed
22 geographic market for which the commercial mobile service
23 provider currently offers service.
24 (2) An assessment of the average outdoor signal strength
25 within geographic areas to be determined by the commission.
26 (3) An assessment of dropped calls within geographic
27 areas to be determined by the commission.
28 (4) Any known coverage gaps within geographic areas to
29 be determined by the commission.
30 (5) Any other matters the commission considers
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1 appropriate.
2 (b) Public comment.--The commission shall establish an
3 Internet website through which members of the public can submit
4 to the commission their comments on the quality of service of
5 any commercial mobile service provider.
6 (c) Publication.--The commission shall make available to
7 commercial mobile service providers and to the public on a
8 semiannual basis a report summarizing and analyzing the
9 information received under this section on the quality of
10 commercial mobile service.
11 Section 9. Plan modification and termination.
12 (a) Extension of plan.--An extension of a wireless service
13 plan shall not be valid unless:
14 (1) the commercial mobile service provider provides
15 point-of-sale notice of the extension to the subscriber;
16 (2) the subscriber agrees to extend the plan by
17 providing express consent to the extension; and
18 (3) the subscriber is given the right to cancel the
19 extension for any reason no later than 30 days after the
20 notice required under paragraph (1) is provided.
21 (b) Penalty-free trial period.--If a subscriber cancels the
22 extension of a plan within the 30-day period provided under
23 subsection (a)(3), the commercial mobile service provider shall
24 not impose a penalty or other charge, including an early
25 termination fee, for the cancellation on the subscriber, except:
26 (1) the subscriber shall be responsible for paying the
27 charges for the commercial mobile service used during the
28 time period in which the plan was in effect; and
29 (2) a subscriber shall receive a pro rata refund of the
30 charges, if any, paid for wireless customer equipment used in
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1 conjunction with the plan if the equipment is returned during
2 the 30-day period.
3 (c) Notice of plan changes.--A commercial mobile service
4 provider shall provide directly to a subscriber written notice
5 of any change in terms or charges of the subscriber's wireless
6 service plan at least 30 days before the change is to take
7 effect.
8 (d) Right to terminate.--A subscriber may, no later than 30
9 days after a change in the terms or charges of the subscriber's
10 plan is to take effect, terminate a plan without penalty,
11 including early termination fees, and receive a pro rata refund
12 of the charges, if any, paid for wireless customer equipment
13 used in conjunction with the plan if the change will result in:
14 (1) higher rates or additional restrictions on use of
15 the service; or
16 (2) a material, adverse change for the subscriber.
17 (e) Consumer notice.--The notice of change required under
18 subsection (c) shall inform a subscriber of:
19 (1) the right of the subscriber to terminate the service
20 and to a pro rata refund for any wireless customer equipment;
21 and
22 (2) the steps necessary to implement the termination.
23 Section 10. Enforcement.
24 The commission may:
25 (1) bring a civil action on behalf of the residents of
26 this Commonwealth to enforce the provisions of this act; and
27 (2) utilize administrative procedures authorized by the
28 Commonwealth to enforce the provisions of this act.
29 Section 11. Rules and regulations.
30 The commission may promulgate rules and regulations to
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1 administer and enforce this act.
2 Section 12. Effective date.
3 This act shall take effect in 180 days.
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