[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2033 Introduced in Senate (IS)]

  1st Session
                                S. 2033

To provide for greater disclosure to, and empowerment of, consumers who 
      have entered into a contract for cellular telephone service.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 7, 2007

    Ms. Klobuchar (for herself and Mr. Rockefeller) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To provide for greater disclosure to, and empowerment of, consumers who 
      have entered into a contract for cellular telephone service.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cell Phone Consumer Empowerment Act 
of 2007''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Some current wireless telephone contracts do not 
        clearly and uniformly disclose to the customer the relevant 
        terms and conditions, including charges, minutes, service 
        plans, and taxes and surcharges.
            (2) Some current wireless telephone bills are not clearly 
        organized, do not clearly describe in plain language the 
        products and services for which charges are imposed, and 
        contain separate, line-item fees that--
                    (A) are not included in the advertised price of 
                wireless services;
                    (B) fail to adequately inform consumers of the 
                specific costs being recovered; and
                    (C) fail to indicate whether such charges are 
                required by government law or rule, or alternatively, 
                are imposed at the discretion of the carrier.
            (3) The current lack of clarity and uniformity in wireless 
        telephone contracts and bills can lead to consumer confusion 
        and can impede the delivery of basic information necessary for 
        consumers to compare the cost of wireless services offered by 
        different carriers.
            (4) Competitive markets function properly only when 
        consumers have access to accurate, meaningful information in a 
        format that they readily understand.
            (5) Wireless companies often charge early termination fees 
        of $175 or more whenever a customer ends his or her service 
        before the expiration of the contract. In many instances, the 
        same fee is charged regardless of whether the contract is 
        terminated a day or a year after it is signed so long as the 
        contract period has not expired.
            (6) The term of the contract is often extended whenever a 
        customer makes a change in the service, so an early termination 
        fee may apply years after a customer first subscribed to a 
        company's service.
            (7) Early termination fees imposed in this way, do not bear 
        a strong relationship to legitimate business practices such as 
        recovery of the cost of a wireless device.
            (8) Customers very often are unaware that their contracts 
        can be, and in fact are--
                    (A) extended based on changes, often minor changes, 
                to their service; and
                    (B) modified in materially adverse ways.
            (9) In some instances, wireless providers do not make 
        available service maps with sufficient levels of granularity 
        for customers, especially customers in rural areas, to know 
        with any confidence whether and where they will have wireless 
        telephone service.
            (10) Wireless customers do not have ready access to 
        information on the service quality of wireless providers, 
        including dropped calls, coverage gaps, and signal strength.
            (11) Customers very often learn that the service quality 
        and coverage of their wireless device is insufficient only 
        after they have signed a 2-year contract and have begun using 
        the device.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (2) Telecommunications carrier.--The term 
        ``telecommunications carrier'' has the meaning given that term 
        by section 3(44) of the Communications Act of 1934 (47 U.S.C. 
        153(44)).
            (3) Telecommunications service.--The term 
        ``telecommunications service'' has the meaning given that term 
        by section 3(46) of the Communications Act of 1934 (47 U.S.C. 
        153(46)).
            (4) Wireless telephone services.--The term ``wireless 
        telephone services'' has the same meaning given the term 
        ``commercial mobile radio services'' as such term is defined in 
        section 332(c) of the Communications Act of 1934 (47 U.S.C. 
        332(c)).
            (5) Wireless telephone service provider.--The term 
        ``wireless telephone service provider'' means any entity that 
        provides wireless telephone service.

SEC. 4. DISCLOSURE REQUIREMENTS FOR PLANS AND CONTRACTS FOR WIRELESS 
              TELEPHONE SERVICE.

    (a) Disclosure Requirements.--Not later than 180 days after the 
date of enactment of this Act, the Commission shall promulgate 
regulations requiring that any publication, including publication on 
the Internet, of the terms of a plan or contract for wireless telephone 
service of a wireless telephone service provider shall set forth, in a 
plain and conspicuous manner, the following information:
            (1) Contract terms.--Information on plan and contract 
        terms, including the length of such contract, early or other 
        termination fees, the length of any trial period, and start-up 
        fees.
            (2) Charges.--Information on charges, including calling-
        from area, monthly base charge, per-minute charges for minutes 
        not included in the plan, and the method of calculating minutes 
        charged.
            (3) Minutes.--Information on minutes included in the plan, 
        including weekday/daytime minutes, nights/weekend minutes, and 
        any other different method by which a subscriber is charged a 
        fee, such as for long distance-calls, roaming calls, incoming 
        calls, and directory assistance calls.
            (4) Taxes and surcharges.--
                    (A) Taxes.--Information on taxes to be collected by 
                the provider for, and paid to, a State, local, or other 
                governmental agency.
                    (B) Surcharges.--Information on surcharges imposed 
                by the provider for the costs of compliance with 
                regulations or for any other purposes.
            (5) E-911.--A statement notifying the customer that the 
        service includes basic wireless 911 service.
            (6) Other information.--Any other information that the 
        Commission considers appropriate to ensure that wireless 
        consumers are fully informed of the terms of the plan or 
        contract.
    (b) Information Required To Be Given to Any Purchaser.--Each 
wireless telephone service provider shall provide the information 
required under subsection (a) to a consumer prior to entering into any 
contract with that consumer for wireless telephone service.
    (c) Format.--The Commission shall complete a rulemaking requiring 
that the information required by subsection (a) be published by 
wireless service providers in a tabular format, in a clear and uniform 
manner.
    (d) Advertising.--A wireless telephone service provider shall, to 
the extent possible allowed by the advertising medium chosen by such 
provider, satisfy the requirements of this section in any advertisement 
related to a plan or contract for wireless telephone service.

SEC. 5. CONTRACT BILLING.

    (a) Organization of Bills.--A wireless telephone service provider 
shall provide that each bill sent to a subscriber for wireless 
telephone service is clearly organized, clearly describes in plain 
language the products and services for which charges are imposed, and 
conforms to such format standards as are established by the Commission.
    (b) Taxes and Other Fees.--
            (1) In general.--Taxes and fees which are required by a 
        Federal, State, or local statute or regulation to be collected 
        from a subscriber shall be set forth in a separate section of 
        each bill sent to a subscriber, and itemized separately.
            (2) Limitation.--No charge which is not required to be 
        recovered from a subscriber under a Federal, State, or local 
        statute or regulation may be included in the section of the 
        bill described in paragraph (1).
    (c) Roaming Charges.--Roaming or off-network charges associated 
with any call placed by a subscriber shall be itemized on each bill 
sent to such subscriber not later than 60 days after such call was 
placed and shall identify the date and originating location of such 
call.
    (d) Itemized Bills.--Upon request of a subscriber, a wireless 
telephone service provider shall provide an itemized bill to such 
subscriber at no cost to such subscriber.
    (e) Rulemaking.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall promulgate regulations 
implementing the provisions of this section.
    (f) Truth-in-Telephone Billing Regulations.--Except as otherwise 
provided in this Act, not later than 180 days after the date of 
enactment of this Act, the Commission shall initiate and conclude a 
proceeding under the Communications Act of 1934 to prevent a 
telecommunications carrier from listing any charge or fee on the 
billing statement of a subscriber as a separately stated charge or fee 
other than a charge or fee--
            (1) for telecommunications service or other services 
        provider to a subscriber;
            (2) for nonpayment, early termination of service, or other 
        lawful penalty;
            (3) for Federal, State, or local sales or excise taxes; or
            (4) expressly authorized by a Federal, State, or local 
        statute, regulation, or rule to appear on a subscriber's 
        billing statement as a separately stated charge or fee.

SEC. 6. PROVISION OF INFORMATION ON WIRELESS TELEPHONE SERVICE COVERAGE 
              AND QUALITY TO CONSUMERS.

    (a) Service Area Maps.--
            (1) In general.--Each wireless telephone service provider 
        shall make available a map showing the wireless telephone 
        service area of such provider and the wireless telephone 
        service area of such provider within each State.
            (2) Granularity.--Each map required under paragraph (1) 
        shall be prepared to reflect the county level of wireless 
        telephone service, shall be updated quarterly, and shall be in 
        sufficient detail to--
                    (A) identify all geographic areas within such 
                county larger than a number of square miles to be 
                determined by the Commission where wireless telephone 
                service is not regularly available; and
                    (B) identify whether or not a consumer shall be 
                able to receive wireless telephone service where the 
                consumer's primary residence is located.
            (3) Times of provision.--A map of the service area of a 
        wireless telephone service shall be provided to a consumer--
                    (A) upon request of the consumer;
                    (B) whenever a plan or contract for the service is 
                entered into; and
                    (C) at such other times as the Commission shall 
                provide.
            (4) Electronic availability.--Each map of a service area 
        under paragraph (1) shall be available--
                    (A) on the Internet website of the provider 
                concerned; and
                    (B) on the Internet website of the Commission.
    (b) Service.--
            (1) Monitoring.--The Commission shall monitor the quality 
        of wireless telephone service provided in the United States by 
        requiring semiannual reports of wireless service providers on 
        the following:
                    (A) Dropped calls within geographic areas to be 
                determined by the Commission.
                    (B) Known coverage gaps (including average signal 
                strength) or dead zones within geographic areas to be 
                determined by the Commission.
                    (C) Any other matters the Commission considers 
                appropriate.
            (2) Public comments.--The Commission shall establish an 
        Internet website at which members of the public can submit to 
        the Commission their comments and views on the quality of 
        service of any wireless telephone service provider.
            (3) Publication.--The Commission shall make available to 
        wireless telephone service providers and to the public on a 
        semiannual basis the information received under this section on 
        the quality of wireless telephone service.
    (c) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall promulgate regulations 
implementing the provisions of this section.

SEC. 7. EARLY TERMINATION FEES.

    (a) Requirements.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall promulgate regulations 
requiring that early termination fees be prorated over the term of a 
wireless subscriber's contract, in a manner that reasonably links the 
fee to recovery of the cost of the device or other legitimate business 
expenses.
            (1) Minimum.--The Commission shall have appropriate 
        discretion to implement the terms of this section, but at a 
        minimum the early termination fee for a 2-year contract should 
        be reduced by \1/2\ after 1 year.
            (2) Considerations.--In conducting this rulemaking, the 
        Commission should consider, among other things, the effect of 
        early termination fees on competition and on the ability of 
        consumers to choose their wireless provider, as well as the 
        legitimate business reasons for early termination fees.

SEC. 8. CONTRACT EXTENSION, MODIFICATION, OR RESCISSION.

    (a) Validity of Extensions.--
            (1) In general.--An extension of a contract for wireless 
        telephone service shall not be valid unless--
                    (A) the wireless telephone service provider 
                provides point-of-sale notice of the extension to the 
                subscriber; and
                    (B) the subscriber may cancel the extension for any 
                reason within 30 days after the notice required by 
                subparagraph (A) is provided.
            (2) No cancellation penalty.--If a subscriber cancels the 
        extension of a contract for wireless telephone service within 
        the 30-day period provided by paragraph (1)(B) the wireless 
        telephone service provider may not impose a penalty or other 
        cost for the cancellation on the subscriber. A charge for 
        wireless telephone service provided to the subscriber during 
        the extension period before cancellation shall not be 
        considered to be a penalty or cost of cancellation for purposes 
        of this paragraph.
    (b) Notice of Any Modifications.--
            (1) In general.--A wireless telephone service provider 
        shall provide subscribers with written notice of any change in 
        rates, terms, or conditions of service at least 30 days before 
        such change is to take effect.
            (2) Right to terminate for material adverse changes.--If 
        any change in rates, terms, or conditions of service will 
        result in higher rates or more restrictions on service or 
        otherwise will result in a material, adverse change for a 
        subscriber, such subscriber may, not later than the day such 
        change is to take effect, terminate the service without penalty 
        and receive a pro rata refund of the charges, if any, paid for 
        the handset used for such service.
            (3) Required content of notice.--The notice of change 
        required under paragraph (1) shall inform a subscriber of--
                    (A) the right of that subscriber to terminate the 
                service and to a handset refund; and
                    (B) the steps necessary to implement such a 
                termination.
    (c) Right of Rescission.--
            (1) In general.--A contract for wireless service may be 
        canceled upon the request of a subscriber for any reason up to 
        30 days after the date on which the contract was executed.
            (2) No penalty.--If a subscriber exercises the right of 
        rescission under paragraph (1), there shall be no penalty or 
        other costs to such subscriber for such rescission, except that 
        such subscriber shall be responsible for the cost of the 
        wireless service used during the time period the contract was 
        in effect.
            (3) Handset.--On the return of any handset purchased or 
        leased in connection with the purchase of wireless service, a 
        subscriber may receive a pro-rated refund of any amount paid 
        for the handset.

SEC. 9. REPORT ON HANDSET LOCKING AND PORTABILITY.

    (a) Report.--Not later than 180 days after the date of enactment of 
this Act, the Commission shall submit a report to Congress that 
analyzes--
            (1) the practice in the United States of handset locking;
            (2) the practice of handset portability in European and 
        Asian markets;
            (3) the effects on competition and the effect of consumer 
        behavior, of the practices described in (1) and (2); and
            (4) potential methods of regulating handset locking and 
        portability in the United States.

SEC. 10. TERMINATION OF CONTRACTS FOR CELLULAR PHONE SERVICES FOR ARMED 
              FORCES PERSONNEL.

    (a) Termination.--
            (1) Inclusion of contracts under termination authority.--
        Title III of the Servicemembers Civil Relief Act (50 U.S.C. 
        App. 531 et seq.) is amended by adding at the end the following 
        new section:

``SEC. 309. TERMINATION OF CONTRACTS FOR CELLULAR PHONE SERVICE.

    ``(a) Termination by Servicemember.--A servicemember who is a party 
to a contract described in subsection (b) may, at the option of such 
servicemember, terminate the contract at any time after--
            ``(1) the date of the entry of that servicemember into 
        military service; or
            ``(2) the date of the military orders of the servicemember 
        described in paragraphs (1) or (2) of subsection (b), as the 
        case may be.
    ``(b) Covered Contracts.--This section applies to any 
telecommunications contract for cellular phone service--
            ``(1) the contract is executed by or on behalf of a person 
        who thereafter and during the term of the contract enters 
        military service (or receives an order to enter military 
        service) under a call or order specifying a period of not less 
        than 90 days (or who enters military service under a call or 
        order specifying a period of 90 days or less and who, without a 
        break in service, receives orders extending the period of 
        military service to a period of not less than 90 days); or
            ``(2) the person enters into the contract while in military 
        service and thereafter receives military orders for a permanent 
        change of station outside of the continental United States, or 
        to deploy with a military unit for a period of not less than 90 
        days, to a location that does not support continuation of the 
        service under the contract.
    ``(c) Manner of Termination.--
            ``(1) In general.--Termination of a contract under 
        subsection (a) is made by delivery by the servicemember of 
        written notice of such termination to the other party to the 
        contract (or that person's grantee or agent).
            ``(2) Nature of notice.--Delivery of notice under paragraph 
        (1) may be accomplished--
                    ``(A) by hand delivery;
                    ``(B) by private business carrier; or
                    ``(C) by placing the written notice in an envelope 
                with sufficient postage and with return receipt 
                requested, and addressed as designated by the party to 
                be notified (or that party's grantee or agent), and 
                depositing the written notice in the United States 
                mails.
    ``(d) Effective Date of Contract Termination.--Termination of the 
contract is effective on the day on which the notice is delivered.
    ``(e) Penalties.--
            ``(1) Misdemeanor.--Any person who knowingly seizes, holds, 
        or detains the personal effects, security deposit, or other 
        property of a servicemember (or of a dependent of a 
        servicemember) who lawfully terminates a contract covered by 
        this section, or who knowingly interferes with the removal of 
        such property from premises covered by such contract, for the 
        purpose of subjecting or attempting to subject any of such 
        property to a claim for contract payments accruing subsequent 
        to the date of termination of such contract, or attempts to do 
        so, shall be fined as provided in title 18, United States Code, 
        or imprisoned for not more than 1 year, or both.
            ``(2) Preservation of other remedies.--The remedy and 
        rights provided under this section are in addition to and do 
        not preclude any remedy for wrongful conversion otherwise 
        available under law to the person claiming relief under this 
        section, including any award for consequential or punitive 
        damages.
    ``(f) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Military orders.--The term `military orders', with 
        respect to a servicemember, means official military orders, or 
        any notification, certification, or verification from the 
        servicemember's commanding officer, with respect to the 
        servicemember's current or future military duty status.
            ``(2) CONUS.--The term `continental United States' means 
        the 48 contiguous States and the District of Columbia.''.

SEC. 11. ENFORCEMENT.

    (a) Enforcement by the FCC.--
            (1) In general.--The Commission shall have the power and 
        authority to enforce the provisions of this Act as if such 
        provisions were provisions of the Communications Act of 1934.
            (2) Penalties.--Penalties authorized by title V of the 
        Communications Act of 1934 may be imposed under this subsection 
        for a violation of a provision of this Act.
    (b) Enforcement by States.--
            (1) Authority.--The attorney general of a State, or the 
        public utility commission of a State if authorized by the laws 
        of the State, may--
                    (A) bring a civil action on behalf of the residents 
                of the State in a district court of the United States 
                of appropriate jurisdiction to enforce the provisions 
                of this Act; or
                    (B) establish or utilize existing administrative 
                procedures to enforce the provisions of this Act.
            (2) Penalties.--Penalties authorized by title V of the 
        Communications Act of 1934 for a violation of a provision of 
        that Act may be imposed in a civil action under the subsection 
        for a violation of a provision of this Act.

SEC. 12. PREEMPTION.

    This Act preempts the laws of any State to the extent that such 
laws are inconsistent with this Act, except that this Act shall not 
preempt any State laws that provide additional protection to 
subscribers of wireless telephone service.
                                 <all>