The FCC Is Looking to Regulate Early Termination Fees

The FCC is considering the Cell Phone Consumer Empowerment Act, which was introduced in September 2007. The act looks to regulate the Early Termination Fees that wireless carriers charge consumers for breaking a contract. Historically, these ETFs were up to $200 per line, which can add up quickly for a family with cellphones. The act seeks to implement a prorated system, where the amount would be reduced gradually in proportion to the length of contract that has been completed. AT&T, Sprint, and T-Mobile USA are either already offering prorated ETFs, or have announced an intention to do so.

The act also asks the FCC to mandate that consumers be allowed 30 days, or 10 days after their first bill, in which they can cancel a new service without any penalty. Most of the major carriers already offer a 30 day trial window.