AARP Hearing Center
Background
Wireless phones have assumed a central role in modern life. For many consumers, including older adults, they have become indispensable. A large majority of older adults use smartphones today. In 2023, 89 percent of people age 50–64 used smartphones, as did 76 percent of people age 65 and older.
However, complex contracts can make it difficult for consumers to understand the true costs and capabilities of their service. In addition, wireless companies sometimes engage in unfair, deceptive, or abusive practices that harm consumers. For example:
- Consumers have complained about unexpected charges that are not disclosed clearly ahead of time.
- Advertisements for cell service are sometimes misleading, with inaccurate claims about coverage, data speeds, or capabilities.
- High-pressure sales tactics may lead consumers to pay for services they do not need or use (see also Deceptive Marketing in Telecommunications).
- Concerns about the privacy and security of cell phone data also exist (see also Privacy Protections).
Under federal law, states are largely barred from regulating wireless phone companies, except under certain conditions. States are allowed to regulate “other terms and conditions” of wireless services that do not pertain directly to rates, including placement of wireless facilities, billing and marketing practices, and other consumer protection matters. The line between rate regulation and “other” oversight is an ongoing subject of contention between the wireless industry and state and federal regulators.
WIRELESS COMMUNICATIONS: Policy
WIRELESS COMMUNICATIONS: Policy
Consumer protections
Policymakers should create and enforce consumer protections for wireless communications services. This includes text messages.
Text messages should be classified as telecommunications services, like phone calls (see also Net Neutrality).
Protections should include fair pricing with limits on fees. All consumers should be able to cancel, without penalty, any contract for wireless telephone service within at least 20 days after the date of the first bill for monthly service following service activation. Within that period, consumers should be able to return, for a full refund, any equipment acquired from the provider or its agents or authorized dealers.
Consumers should receive clear, up-front information to facilitate price and quality comparisons. Contract terms should be clear, concise, and in plain language. Consumers should be made aware of network holes or high-traffic areas that disrupt service.
Service providers should eliminate fees that they charge customers for terminating a service contract before it expires. At a minimum, these fees should be substantially reduced and reflect the actual cost of terminating service.
Consumers should have timely and effective means of redress when they encounter problems. Mandatory binding arbitration should be prohibited (see also Pre-Dispute Mandatory Binding Arbitration). Vendors must clearly explain how and where consumers can lodge complaints.
Consumers should have a choice of high-quality service from a range of providers that compete for their business. Consumers should be able to use their existing cell phones when they switch providers.
Consumers should have easy access to customer service agents—rather than just an automated call system—and to user-friendly instructions for wireless goods and services.
Consumers should be adequately represented in public policy decision-making related to wireless communications.
Consumers should be protected from robocalls and robotexts (see also Telemarketing fraud).
Providers should protect consumers’ privacy (see also Data Privacy).