Senator Amy Klobuchar from Minnesota plans to introduce new legislation to prevent wireless carriers from unfairly raising penalties for Early Termination Fees. Last week, Verizon Wireless said it plans to raise Early Termination Fees from $175 to $350 for advanced devices starting on November 15.
Klobuchar wrote to the FCC:
“Verizon Wireless’ decision shows us once again that the wireless industry cannot police itself and will not, on its own, make its practices more competitive and consumer-friendly. To that end, I urge the FCC to review the recent Verizon Wireless decision as well as the competitive and economic impact of ETFs on wireless consumers.”
Klobuchar also wrote to Verizon CEO Lowell McAdams, urging him to reconsider. Sprint has publicly stated that it will not increase its ETF policy in the wake of Verizon’s decision. Neither AT&T nor T-Mobile have made their stances clear.
Consumer groups have pushed for legislation to scrap the fees or at least create standard rules for the practice, which they say is a way for carriers to keep users locked into long-term contracts. The issue died down as AT&T, Verizon Wireless, Sprint Nextel and T-Mobile decided to pro-rate their fees based on length of contract.
