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Sep 27, 2005 1:33 am US/Pacific
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Update: Senator To Fight For Cellphone Regulations
by Jeanette Pavini
(CBS 5)
On the latest edition of 30 Minutes Bay Area we brought you the story of a young woman who received a $26,000 bill after her cellphone was stolen.
Wendy Nguyen had no idea that her phone was lifted just hours before her big trip. While she was on vacation in Vietnam, thieves used her phone to run up the enormous tab. She was even more shocked when came home and her cellphone company expected her to pay the full amount.
We showed that story to State Senator Jackie Speier, and wireless industry spokesman John Walls.
"It was outrageous," Senator Speier said after watching the story. "I mean, to somehow expect that woman to pay a $26,000 bill is preposterous."
Cellphone owners are not protected from fraudulent charges like they are when they loose a credit card.
"As a customer I'm responsible for my device," Walls said after watching the same piece. "I need to know, just like my car keys."
After she was told to file for bankruptcy, Wendy finally called CBS 5 Consumer Watch. We contacted her wireless provider, and they agreed to forgive the debt.
Speier says the real shocker is that Wendy is not alone. There are virtually no consumer protection laws for cellphone customers.
"Congress didn't want it regulated, so for the most part, there isn't any regulation," Speier says. "Companies like the fact that it's the wild, wild west."
Wallis says the cellphone industry has its own voluntary code of conduct to protect customers.
"To categorize it as the wild, wild west…it's a good soundbite, but I don't think it actually portrays the situation as it actually is," Walls says.
Speier says that a voluntary code is not enough. Earlier this year she co-authored a "Consumer Bill of Rights" to provide new legal protections.
Among the proposed regulations were:
- The right to receive clear and complete information about rates, terms, and conditions.
- The right to cancel new phone service within 30 days without penalty.
- The right to dispute billing charges without penalty.
Speier says the wireless industry has fought consumer protection to a standstill.
"A lot of this stuff we think was piling on, and unnecessary," Walls says.
Speier says fighting the cellphone industry is like pushing a boulder uphill. After seeing our story, she says she will introduce another law to protect people like Wendy from Fraudulent charges. She wants you to help by calling your legislator to let them know how you feel.
(© MMV, CBS Broadcasting, Inc. All Rights Reserved.)