Consumers Union endorses 'bill shock' legislation

Consumers Union wrote to Sen. Tom Udall (D-N. Mex.) on Thursday to endorse legislation he introduced forcing telecom companies to simplify phone bills so consumers are not "shocked" when they open the monthly envelope.

The Cell Phone Bill Shock Act of 2010 would require wireless carriers to notify customers by e-mail or text message when they have used 80 percent of their monthly limit for voice minutes, text messages or data usage. The companies would also have to obtain customers' consent before charging them for services not covered by their monthly service plan.

"Consumers Union supports this bill because there are currently no requirements protecting consumers from being caught off guard by unexpectedly high cell phone bills," the letter said, signed by Parul Desai, a policy counsel at Consumers Union.

CTIA, the association for wireless companies, said in a statement last week that bill shock legislation could cause consumers "frustration and confusion."

"We know those outcomes are not Senator Udall's objective. We look forward to talking with the Senator about the many plans and tools that our carriers currently offer their customers so that those who want to monitor their usage are able to do so," it said.