FCC considers move to regulate early termination fees

Posted May 26, 2008 at 02:39 PM by Sue Walsh

Section: Communications, Cellular Providers, Mobile

The FCC is taking a new look at the Cell Phone Consumer Empowerment Act. The act, passed in September of last year, is looking to implement a pro-rated early termination fee system. In such a system, the amount of the ETF would depend on how much of the customers contract has been completed at the time of cancellation. Until recently most providers have charged a flat $200 fee. Sprint and AT&T are already offering such a pro-rated fee structure, and T-Mobile has announced plans to do the same. The act is also asking the FCC to order cell phone providers to allow customers 30 days or 10 days after their first bill to cancel with no fee, however most carriers already offer this.

Via [MobileBurn]