WASHINGTON-The Federal Communications Commission today extended truth-in-billing rules to mobile-phone carriers and said regulatory recovery fees cannot be disguised as government-mandated taxes. But the agency also ruled state regulations governing use of line items are pre-empted by federal law.
While wireless carriers would have preferred to remain exempted from federal truth-in-billing guidelines, they gained more than they lost in an FCC decision that allows cellular operators to continue national calling plans and frees them from having to do battle with 50 different states over billing.
The National Association of State Utility Consumer Advocates wanted the FCC to ban line items other than taxes or charges levied by state, local and federal agencies.
NASUCA and other consumer groups blasted the decision.
“The FCC’s decision blocks states from taking action while refusing to resolve a nationwide problem. This is a ‘lose-lose’ for America’s consumers,” said David Bergmann of the Office of the Ohio Consumers’ Counsel and chairman of NASUCA’s telecom committee.
A key California regulator took a different view.
“The FCC’s decision today is the right one,” said Susan Kennedy, a California Public Utilities Commission member who has been critical of her own agency’s efforts to create a bill of rights for telecom consumers. “Today’s decision clearly places wireless carriers under federal truth-in-billing laws, while maintaining the uniform national framework so critical to keeping costs down for consumers. This decision continues the FCC’s diligent battle against patchwork regulation that cripples competition, while at the same time maintaining a partnership with states on enforcing important consumer protection laws.”
