WASHINGTON-A voluntary code of conduct the mobile-phone industry will unveil here next Tuesday calls on wireless carriers to make more information available to consumers on everything from advertising to coverage maps to monthly bills. The industry also will agree to give subscribers the opportunity to trial service and terminate service contracts under certain circumstances.
Some mobile-phone carriers already have begun to implement some of the reforms.
The new code of conduct, obtained by RCR Wireless News, is the most significant step industry has taken to date to address a huge image problem some mobile-phone carriers are expected to exploit when a federal rule goes into effect Nov. 24 allowing subscribers to keep their telephone numbers when they change wireless carriers.
Mobile-phone operators crafted the new code of conduct in response to mounting complaints from subscribers, increased scrutiny by state and federal policy-makers and the rising tide of consumer litigation.
The cell-phone industry has experienced phenomenal growth, signing up 150 million subscribers in its first two decades. The consumer backlash currently facing carriers represents a new challenge for industry.
The six national mobile-phone operators have signed onto the plan. It remains to be seen, however, whether industry’s move will help fend off members of Congress, state regulators and trial lawyers. The provisions of the voluntary code of conduct are not enforceable.
Under the code of conduct, wireless carriers have promised to:
- Disclose rates and terms of service to consumers.
- Make available maps showing where service is generally available.
- Provide contract terms to customers and confirm changes in service.
- Allow a trial period for new service.
- Provide specific disclosures in advertising.
- Separately identify carrier charges from taxes on billing statements.
- Provide customers the right to terminate service for changes to contract terms.
- Provide ready access to customer service.
- Promptly respond to consumer inquiries and complaints received from government agencies.
- Abide by policies for protection of customer privacy.
