[Congressional Record Volume 157, Number 48 (Tuesday, April 5, 2011)]
[Senate]
[Page S2135]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. UDALL of New Mexico:
  S. 732. A bill to improve billing disclosures to cellular telephone 
consumers; to the Committee on Commerce, Science, and Transportation.
  Mr. UDALL of New Mexico. Mr. President, cell phones today are 
becoming ubiquitous and more essential to our everyday lives. Americans 
today have over 300 million wireless phones.
  We use these phones in new and innovative ways. Consumers today 
increasingly use their cell phones for much more than just talking. 
Mobile broadband services now allow us to surf the Internet, search for 
nearby shops or restaurants, and watch videos right on our wireless 
handsets.
  Since we now use these devices in new ways, it can be more difficult 
for consumers to realize they have exceeded their monthly subscriptions 
for cell phone service. This can have dramatic consequences for 
consumers.
  Consider the case of a Navy ROTC midshipman who mistakenly left his 
smartphone's roaming function turned on while he was abroad. His phone 
downloaded e-mail messages, and he was sent a bill for almost $1,300. 
News outlets have highlighted other cases from across the country, 
including cases where children on family subscription plans racked up 
thousands of dollars in extra charges. A 13-year-old's cell phone data 
usage led to a bill for almost $22,000.
  Bob St. Germain of Massachusetts was billed $18,000 for a 6-week 
period when his son used a cell phone to connect a computer to the 
Internet. I am proud to have Mr. St. Germain's support for the 
legislation I am introducing today. Unfortunately, these stories we 
hear about in the media are certainly not isolated cases, just the most 
egregious.
  In fact, a recent Federal Communications Commission, FCC, survey 
found that 30 million Americans, or 1 in 6 adult cell phone users, have 
experienced cases of ``bill shock.'' Cell phone bill shock occurs when 
a consumer's monthly bill increases when they have not changed their 
plan. In about one in four cases, the consumer's bill increased by more 
than $100. According to a survey by Consumers Union, the publishers of 
Consumer Reports magazine, the median bill shock amount was $83.
  With new, advanced developments in technology, bill shock is a 
growing problem. The introduction of faster ``4G'' networks will make 
it easier than ever for customers to burn through data limits. 
Americans who have cell phone ``family plans'' with multiple phone 
lines may face even greater difficulty monitoring their usage. More and 
more cell phone companies are dropping their unlimited data plans, and 
the risk of bill shock only stands to get worse.
  Although consumers can already access their phone usage by requesting 
this information from their cell phone provider, the FCC survey found 
that almost 85 percent of American consumers who suffered bill shock 
were not alerted that they were about to exceed their allowed voice 
minutes, text messages, or data downloads.
  In many cases, a simple alert message would help consumers avoid bill 
shock. That is why today I am pleased to introduce the Cell Phone Bill 
Shock Act of 2011.
  This legislation is similar to what I proposed in the last Congress. 
It would require that cell phone companies do two things: first, that 
they notify cell phone customers when they have used 80 percent of 
their limit of voice minutes, text messages, or data usage. This 
notification could be in the form of a text message or email, and 
should be free of charge. Second, this legislation would require cell 
phone companies to obtain a customer's consent before charging for 
services in excess of their limit of voice, text, or data usage. 
Customers could give such consent by calling or sending a free text 
message or email to their phone company.
  In the European Union, wireless phone companies already provide 
similar notifications when wireless consumers are roaming and when they 
reach 80 percent of their monthly data roaming services.
  Congress already approved legislation to help consumers avoid bank 
overdraft fees from debit card and ATM transactions. Banks must now 
obtain their customer's permission before allowing debit card 
transactions which would incur overdraft fees. My legislation extends 
that same concept to cell phone customers, who should benefit from 
similar protections against ``bill shock.''
  The texting and Internet capabilities that make today's cell phones 
more useful than ever should be applied to help consumers avoid bill 
shock. Sending an automatic text notification to one's phone or an 
email alert should not place a burden on cell phone companies. Passing 
my commonsense legislation will help prevent consumers from facing 
``bill shock'' problems in the future.
  I look forward to working with my colleagues to pass this important 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 732

       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 Bill Shock Act of 
     2011''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) A recent survey conducted by the Federal Communications 
     Commission found that 1 out of 6 consumers who subscribe to 
     commercial mobile service has experienced ``bill shock'', 
     which is the sudden increase in the monthly bill of a 
     subscriber even though the subscriber has not made changes to 
     their monthly service plan.
       (2) Most consumers who experience bill shock do not receive 
     notification from their provider of commercial mobile service 
     when the consumer is about to exceed the monthly limit of 
     voice minutes, text message, or data megabytes.
       (3) Most consumers who experience bill shock do not receive 
     notification from their provider of commercial mobile service 
     that their bill has suddenly increased.
       (4) Prior to the enactment of this Act, a provider of 
     commercial mobile service was under no obligation to notify a 
     consumer of such services of a pending or sudden increase in 
     their bill for the use of such service.
       (5) Section 332 of the Communications Act of 1934 (47 
     U.S.C. 332) requires that all commercial mobile service 
     provider charges, practices, classifications, and regulations 
     ``for or in connection with'' interstate communications 
     service be just and reasonable, and authorizes the Federal 
     Communications Commission to promulgate rules to implement 
     this requirement.

     SEC. 3. NOTIFICATION OF CELL PHONE USAGE LIMITS; SUBSCRIBER 
                   CONSENT.

       (a) Definition.--In this section, the term ``commercial 
     mobile service'' has the same meaning as in section 332(d)(1) 
     of the Communications Act of 1934 (47 U.S.C. 332(d)(1)).
       (b) Notification of Cell Phone Usage Limits.--The Federal 
     Communications Commission shall promulgate regulations to 
     require that a provider of commercial mobile service shall--
       (1) notify a subscriber when the subscriber has used 80 
     percent of the monthly limit of voice minutes, text messages, 
     or data megabytes agreed to in the commercial mobile service 
     contract of the subscriber;
       (2) send, at no charge to the subscriber, the notification 
     described in paragraph (1) in the form of a voice message, 
     text message, or email; and
       (3) ensure that such text message or email is not counted 
     against the monthly limit for voice minutes, text messages, 
     or data megabytes of the commercial mobile service contract 
     of the subscriber.
       (c) Subscriber Consent.--The Federal Communications 
     Commission shall promulgate regulations to require a provider 
     of commercial mobile service shall--
       (1) obtain the consent of a subscriber who received a 
     notification under subsection (b) to use voice, text, or data 
     services in excess of the monthly limit of the commercial 
     mobile service contract of the subscriber before the provider 
     may allow the subscriber to use such excess services; and
       (2) allow a subscriber to, at no cost, provide the consent 
     required under paragraph (1) in the form of a voice message, 
     text message, or email that is not counted against the 
     monthly limit for voice minutes, text messages, or data 
     megabytes of the commercial mobile service contract of the 
     subscriber.
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