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Court: FCC Overstepped Billing Authority
By Mark Rockwell
August 1, 2006
NEWS@2 DIRECT
A federal court of appeals in Atlanta ruled the FCC overstepped its authority by telling state regulators they couldn't require or prohibit the use of line items on consumers' wireless bills.
The issue is close to a larger effort by wireless carriers to keep states from regulating wireless services. States are allowed to regulate terms and conditions of bills, but not rates, which are left to federal regulators.
In 2004, state regulators said that wireless carriers were using line items on bills that weren't mandated by federal rules to impose surcharges and other fees, and that truth in billing rules needed to be strengthened.
State groups - the National Association of Consumer Advocates (NASUCA), in particular - filed comments on the issue at the FCC, along with consumers who "expressed confusion and dissatisfaction with their monthly telephone bills," said the U.S. Court of Appeals for the 11th Circuit decision. In 2005, the FCC preempted state regulators from requiring or prohibiting line items on wireless bills.
The Atlanta court ruled that the FCC "exceeded its authority when it preempted the states from requiring or prohibiting the use of line items. The scope of federal authority to regulate 'rates' or 'entry' does not include the presentation of line items on cellular wireless bills. This billing practice is a matter 'of other terms and conditions' that Congress intended to be regulable by the states."
The wireless industry sees the decision as a setback. "This decision highlights the need for Congress to re-establish a firm and consistent national regulatory framework for wireless service," said CTIA president and chief executive Steve Largent in a statement following the ruling. "Creating a mish-mash of inconsistent state-by-state wireless regulations will do nothing to benefit consumers and doesn't make sense. Forcing wireless providers to establish different business models in different states, whether it's in all 50 or just a handful, for the sole purpose of complying with disparate regulatory regimes will only increase consumer costs and slow innovation. At the end of the day, consumers will lose," Largent said.