The Federal Communications Commission (FCC) voted July 12 to issue a Notice of Proposed Rulemaking (NPR (News - Alert)) seeking public comments on new rules intended to crack down even further on the practice of “mystery phone bill fees” and “cramming” — the illegal placement of unauthorized fees on a consumer's bill either by the phone company or an outside party.

Despite the Commission’s comprehensive guide as to what constitutes cramming, what consumers can do to protect themselves, and actions to be taken if you believe you have been a victim of a mystery charge or of cramming, the practice remains widespread. Policy makers are not pleased.  The U.S. Senate held hearings on the matter on July 11, and the FCC’s (News - Alert) proposed new rules are based on estimates that 15 to 20 million American households have mystery fees on their monthly landline bills every year.  The action comes as mystery fees and cramming are becoming phenomena on wireless networks as well.

In its NPR, comments are sought on proposals to:

• Require landline carriers to place third-party charges in a separate section of phone bills
• Notify consumers whether they offer the option of blocking such charges
• Provide notification when consumers sign up for a service which must appear both online and on their bills
• Require landline and wireless companies to notify consumers they can file complaints about cramming with the FCC, giving them the agency's contact information

The FCC has also asked for comment on tighter proposals to require landline phone companies to offer services that:

• Block third-party fees
• Prohibit them from charging for third-party services
• Automatically block third-party fees from consumer bills altogether
• Extend all rules applying to landline carriers to wireless ones

And, the NPR seeks comments on whether landline telephone companies and/or wireless providers should be required to:

• Provide accurate contact information for third-party vendors on their telephone bills; and/or
• Screen third parties for prior rule violations or other violations of law before agreeing to place their charges on telephone bills

In its press release on the NPR, the FCC says:

“These proposed rules would help landline telephone consumers detect unauthorized charges that may come from third parties by keeping all third-party charges separate from all telephone company charges, and would also help consumers block those charges. Most landline phone companies now allow consumers to block third-party charges, but may only tell consumers about that option after they have complained about an unauthorized charge. Because many consumers complain that it is difficult to get unauthorized charges resolved, the new rule on FCC contact information would let consumers know they can come to the agency for help if they need it.”

In our computerized age, most people have experienced being inadvertently or purposely charged for services not ordered, or ordered by “fat fingering” a computer icon by mistake or ordered something whose full terms and conditions were not properly presented at the point of purchase. Unfortunately, while mistakes can happen in an instant, as the Commission notes it can take months for wrongful charges to removed, accounts credited or, if necessary, complaint actions pursued.  

The use of telephone company bills as vehicles for others to charge for their services has grown, and service offerings from the operators themselves have become more complex. Unfortunately, the opportunity for not just “oops!” moments, but also for bad actors to sneak a few dollars onto people’s bills under innocuous sounding titles has grown with wireless only exacerbating the problem.

The message from the FCC to the industry, as well as from Senators, is clear — telling customers to “cram it” when it comes to asking for a fair rendering of their phone bills will not be tolerated. 

Note: Check out The Today Show story on cramming below:

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