Sen. Klobuchar: Verizon’s Fees Are Anti-Consumer
November 9, 2009
Posted by Josh Levy
It's good to see that Congress is waking up to Verizon's outrageous early-termination fees, which were recently doubled to $350 for "advanced devices" (read: smart phones).
Today, Sen. Amy Klobuchar (D-Minn.) expressed her opposition to the fee, calling it "anti-competitive and anti-consumer."
Klobuchar voiced her concerns in a letter to Verizon CEO Lowell McAdam. She wrote, “I remain concerned that [early-termination fees] — especially at these high prices — unfairly penalize consumers, bear little to no relationship to the cost of the handset device, and are anti-consumer and anti-competitive.”
The letter is an important step toward shaming the wireless industry, and will hopefully lead to action that will make it impossible for companies to price-gouge customers.
The senator also used the opportunity to promote her bill, the Cell Phone Consumer Empowerment Act, which would require wireless providers to prorate their early termination fees (before the bill saw much life, the industry responded by... prorating early-termination fees, hoping to appease Congress and obviate a law).
Free Press applauds Sen. Klobuchar for standing up for the public’s interest. Verizon's decision to increase its fees has put many of us over the edge, and we're happy to see them called out.
Free Press is a national, nonpartisan organization working to reform the media. Free Press does not support or oppose any candidate for public office. Through education, organizing and advocacy, we promote diverse and independent media ownership, strong public media and universal access to communications.
Comments
Let's talk about Verizon's
Let's talk about Verizon's fees in general, the upped early termination fee is the straw that broke the camel's back. Sure they have the best network, which they deserve (to a certain extent) to charge a premium for, but they continue to nickel and dime us to death for every service; even in a time where many other companies are moving away from that model and into the more consumer friendly unlimited model. I find their business practices to be generally anti-competitive and anti-consumer. Just look at their pricing for the new "Droid" phones, specifically if you want to use the MS exchange features or tethering. I am currently in the market for a smartphone, and even though I would like to stay with Verizon because of the coverage, I will be packing up and heading to another provider when my contract is up in a few months because of Verizon's pricing.
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