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The FCC held public hearings on early termination fees on Thursday. The FCC’s Chairman, Kevin J. Martin, would like rules established to ensure early termination fees are in relation to the recovery costs and not abused in a manner to retain unsatisfied customers within a carrier. An example Martin gives is that US$500 phone shouldn’t have the same termination fee as a US$50 phone.
Martin also stated that termination fees should be prorated and the contract for service should be a “reasonable period of time”. Other guidelines he would like established relate to early termination fees not being extended if a customer renews their contract without receipt of new hardware.
Another area of concern the FCC Chairman would like addressed through FCC guidelines; is the ability for a customer to receive their first bill to verify the accuracy of the quoted monthly charge before an early termination fee kicks in.
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