Wireless industry says 'bill shock' rules are unnecessary

The wireless industry urged the Federal Communications Commission (FCC) not to mandate that cell phone companies make their billing practices clearer, a possibility the agency is considering in its effort to mitigate "bill shock."

The commission started a proceeding in May seeking comment on whether it should make regulations to prevent consumers from receiving higher-than-expected cell phone bills.

CTIA, the wireless trade group, and the Rural Cellular Association (RCA) said in filings this week that such rules are "unnecessary."

Instead of regulating, "the Commission should work with wireless carriers to educate wireless consumers of their available [billing and service] options, and should not prescribe — and ultimately limit — carriers' ability to provide effective consumer account management tools," CTIA said.

RCA argued the companies have the issue under control.

"Members have adopted internal practices and procedures to remediate billing concerns directly with their customers," the trade group wrote.

An FCC survey released in May picked up national attention for reporting that nearly one in five American consumers have been subject to sudden and unexpected rises in their monthly cellular phone bills.

The survey provided ammunition for Capitol Hill to raise concerns. Sen. Amy Klobuchar (D-Minn.) touted her legislation that would regulate early termination fees.

“The FCC’s consumer survey confirms what we have known for a long time — that confusing early termination fees undermine competition and result in less consumer choice,” she said in May.

CTIA, however, is not so sure couching the debate in terms like "bill shock" is fair to wireless providers. "I don’t think the high-level messaging is fair from the FCC right now," CTIA regulatory affairs vice president Chris Guttman-McCabe told The Hill.