UCAN has released comments [1] regarding proposed "cramming" reporting requirements in Calfornia. Cramming is the placing of unauthorized charges on consumers' telephone bills. UCAN supports a thorough reporting requirement, particularly due to abuses (see UCAN's AT&T International Roaming [2] and Sprint Federal Class Action [3]) in the wireless industry.
A summary of the comments:
"Cramming remains a persistent problem consumers face across the telecommunications industry. UCAN receives complaints regularly from consumers claiming that charges on their phone bill are not authorized, deceptive, or misleading. Not surprisingly, where there have been no reporting requirements and the least oversight, in the wireless industry, there is the most acute problem. The types of charges crammed range from third party services such as ringtone, text message, and multimedia charges on wireless phones, to international roaming fees, to many other variations of taxes, fees, and surcharges. The universe of charges that may be crammed on a consumer's bill is only increasing due to technological advances.
Cramming is a child of these technological advances and deregulation. The Commission's request for comments regarding cramming reporting requirements cited the Consumer Protection Initiative proceedings for the proposition that the "key to protecting consumers against unscrupulous practices by carriers is enforcement." UCAN agrees that enforcement is what is needed most in response to persistent cramming complaints. Enforcement, however, is where the largest void exists.
A thorough reporting requirement could be a significant step towards filling the current enforcement void. On the contrary, a weak reporting requirement will simply allow carriers the opportunity for manipulation, minimizing the efficacy of the information the Commission receives and any enforcement and oversight efforts reliant on that information.
The Commission states that the purpose of enacting the cramming rules "was to clarify current law and to emphasize that it is the billing telephone company's responsibility to resolve cramming complaints." As the Commission says, it is the telephone company's responsibility to resolve cramming complaints and to police their bills. That said, it is then the Commission's responsibility to ensure both resolution of cramming complaints and policing are actually occurring. UCAN's experience suggests an urgent need for oversight and enforcement of both areas. This cannot occur without a thorough reporting requirement.
UCAN is encouraged by the potential to adopt a reporting requirement that moves us towards a consumer protection system that prevents excesses in cramming and provides consistent monitoring, and away from a system that reacts only when the problems have become so pervasive that they cannot be ignored. UCAN recommends that any claims by carriers that certain reporting or record keeping options are unduly burdensome be heavily scrutinized and require a substantial level of proof."