> Senate Considers Striking Down 'Common Carrier' Exception > > > The wireless industry is expected to fight hard against repealing a rule > that exempts telecommunications providers from the requirements of the FTC > Act. > By Richard Martin > InformationWeek > April 14, 2008 01:42 PM > > Seeking to bring more transparency and consumer-friendliness to the U.S. > mobile and wireless industry, two U.S. senators have introduced a bill > that would for the first time bring wireless carriers under the authority > of the Federal Trade Commission. > Specifically the new bill -- the FTC Reauthorization Act of 2008, > co-sponsored by Hawaii Democrat Daniel Inouye, chairman of the Senate > Commerce Committee, and Byron Dorgan, a Democrat from North Dakota and the > chairman of the Interstate Commerce, Trade, and Tourism Subcommittee -- > would repeal the "common carrier exception," which has been in force since > the 1930s and exempts big telecommunications providers from the > requirements of the FTC Act. > The Dorgan/Inouye bill "repeals this exemption, allowing the Commission to > protect consumers from unfair and deceptive acts or practices by > telecommunications common carriers, particularly in the areas of > advertising, marketing, and billing," according to a joint statement > outlining the bill's provisions. > Facing a raft of federal legislation that would increase government > oversight of its contracts and marketing practices, the wireless industry > is expected to fight hard against repealing the common carrier exception. > Testifying before the Senate Commerce Committee last week, FTC Chairman > William Kovacic said that the common carrier exemption, which dates from > the era of highly regulated telecom monopolies -- is obsolete. > "Technological advances have blurred the traditional boundaries between > telecommunications, entertainment and high technology," stated Kovacic in > his prepared statement. "As the telecommunications and Internet industries > continue to converge, the common carrier exemption is likely to frustrate > the FTC's ability to stop deceptive and unfair acts and unfair practices > and unfair methods of competition." > Among the congressional attempts to shorten the regulatory reins on the > industry is a bill introduced last year by Sen. Amy Klobuchar, Dem.-Minn., > called the Cell Phone Consumer Empowerment Act. Included in that measure's > provisions is a requirement that wireless carriers pro-rate early > termination fees, which are viewed by consumer advocates as locking > customers into restrictive contracts, regardless of the quality of > service. Under the Klobuchar act, for example, a customer ending a > two-year contract after the end of the first year would pay only half the > normal termination fee. > Seeking to head off such legislative mandates, the U.S. wireless carriers > have already begun moving toward pro-rated termination fees. Last month > AT&T (NYSE: T), the No. 1 U.S. wireless carrier, became the latest > provider to announce it would adjust the fees, beginning in May. > The AT&T move "needs to be followed by other reasonable reforms that will > provide consumers the freedom of choice they deserve in the wireless > marketplace," Sen. Klobuchar said in a statement. "I will continue to push > for the cell phone consumer 'Bill of Rights' to help modernize the rules > governing this industry and make sure consumers are getting a fair deal." > The FTC Reauthorization Act would also increase the Commission's budget by > 10% in each of the next seven years. > > > Discuss This > 1 message(s). Last at: Apr 15, 2008 11:58:59 AM > bucketofsquid > commented on Apr 15, 2008 11:58:59 AM > It is nice to see that not all politicians are scum. Too bad the same > isn't true of telecom companies. What I want to know is; why is any > business exempted from prosecution for fraud? > > > > Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it > now. > > > > Internal Virus Database is out-of-date. > Checked by AVG. > Version: 7.5.519 / Virus Database: 269.22.1 - Release Date: 3/26/2008 > 12:00 AM
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