WASHINGTON-The states are preparing to crack down on the mobile-phone industry.
Twenty-two attorneys general, who have been collecting information from wireless carriers during the past two years, are laying the groundwork to confront the nation’s mobile-phone carriers with a proposal to change billing and other business practices deemed deceptive and harmful to consumers voluntarily or else face the prospect of widespread and prolonged litigation, according to a knowledgeable source.
Under one scenario in play, according to the source, the 22 state attorneys general would try to entice mobile-phone carriers to enter a settlement without attaching blame. Wireless companies could agree to take certain actions under a court-approved Assurance of Voluntary Compliance. If an agreement between the attorneys general and mobile-phone operators cannot be reached, the states would force the issue in a flurry of lawsuits throughout the country.
It is unclear when the states will formally approach the mobile-phone industry, but there are indications they are about ready to move forward.
In addition to facing action by attorneys general from Vermont to Hawaii, the mobile-phone industry is coming under increased scrutiny and attack by public utility commissions, U.S. lawmakers and trial lawyers because of poor service quality, billing problems and questionable advertising.
