NY Assembly Acts to Provide Nation's Strongest Cell Phone Consumer Protections; AARP Urges Senate to Pass the Legislation
25 June 2006
Consumers achieved a major victory today in spite of heavy opposition from the cell phone industry. The Assembly has passed legislation (A.8539), sponsored by Assemblyman Daniel O'Donnell, providing New Yorkers with the strongest set of cell phone consumer protections in the nation.
"AARP commends the Assembly and the sponsor of the bill, Assemblyman O'Donnell, for standing up to the powerful cell phone industry and moving to bring real consumer projections to New Yorkers," said Lois Aronstein, AARP New York State director. "We urge the Senate to do the same and pass these consumer protections."
The legislation (A.8539), sponsored by Assemblyman Daniel O'Donnell, would require cell phone companies to disclose all hidden fees, provide consumers with better coverage maps, including where E-911 works and, more importantly, allow people to cancel their contracts without penalty after they receive their first bill . AARP strongly supports the issue as older New Yorkers tend to buy their cell phones to use as safety tools in case of an emergency. Additionally, many people on fixed incomes are finding themselves locked into unaffordable contracts because the amount billed is frequently higher than the advertised price.
"The Assembly has shown us that consumers can win in the face of strong industry opposition," added Aronstein. "The cell industry lobbied hard to defeat this bill."
The cell phone industry is strongly opposed to the bill and is working to defeat it, claiming that the legislation will result in an increase in the cost of cell phones and services. AARP believes that passing the legislation will make the industry more competitive and responsive to consumers who would be retained because of service and quality rather than lengthy contracts.
An AARP survey of New York State residents found that over 85 percent support the provisions in the Cell Phone Consumer Protection Act. Nearly 90 percent want the industry to adhere to its now optional Voluntary Code of Conduct that contains many similar provisions to the legislation.
In 2004 and 2005, the Better Business Bureau reported that more complaints about cell phones were received than any other business. According to the New York State Consumer Protection Board, the cell phone industry is the second most criticized in the state.
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AARP has over 2.6 million members in New York State. AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP produces AARP The Magazine, published bimonthly; AARP Bulletin, their monthly newspaper; AARP Segunda Juventud, their bimonthly magazine in Spanish and English; NRTA Live & Learn, their quarterly newsletter for 50+ educators; and their Web site, http://www.AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
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