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. 20080H2647B3989 - 2 -
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. 20080H2647B3989 - 3 -
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: 20080H2647B3989 - 4 -
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 20080H2647B3989 - 5 -
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). 20080H2647B3989 - 6 -
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 20080H2647B3989 - 7 -
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 20080H2647B3989 - 8 -
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 20080H2647B3989 - 9 -
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 20080H2647B3989 - 10 -
1 administer and enforce this act. 2 Section 12. Effective date. 3 This act shall take effect in 180 days. F11L66AJM/20080H2647B3989 - 11 -