Constitutional Law

A Preemption Hang Up

Consumer advocates criticized a plan under consideration by the FCC to preempt state authority to regulate cell phone early termination fees in return for the wireless industry’s agreement to grant consumers the option to cancel service within 30 days of signing a contract and pro-rating termination fees.

Cell phone providers routinely charge high fees for early termination, prompting class actions lawsuits in several states and claims that the purpose of the fees is to discourage customers from switching providers. ACS recently held a panel discussion on the role of class action lawsuits and released an issue brief on the emerging threat of regulatory preemption.

Full post as published by ACS Blog on May 25, 2008 (boomark / email).