Luján Introduces Legislation to Refund Customers for Network Outages

Introduction Follows Widespread Cell Phone Outage That Impacted Users Nationwide

Washington, D.C. - Today, U.S. Senator Ben Ray Luján (D-N.M.), Ranking Member of the Senate Commerce Committee's Subcommittee on Telecommunications and Media, introduced the Outage Refund Guarantee Act, legislation to ensure consumers are fairly compensated for the time they are without the service they rely on. The Outage Refund Guarantee Act would require cable, DBS, internet, and telephone providers to issue credit for any service outage lasting more than four hours to ensure consumers are properly compensated for the service they pay for.

"In today's world, reliable internet, cable, and phone service are no longer a convenience, but rather a necessity for everyday life," said Senator Luján. "When an outage hits, it leaves thousands without the service they rely on for work, safety, and daily life. That's why I'm introducing the Outage Refund Guarantee Act to ensure consumers are properly compensated for service outages. If you pay for a service, that's what you should be getting."

Specifically, the Outage Refund Guarantee Act:

• Requires providers (cable, DBS, Internet, and telephone) to issue credit for any service outage lasting more than four hours. The credit is equal to 1/30 of the monthly bill for every period of four hours or more. Credits will be applied automatically to the consumer's account, without the need for the consumer to take any action.
• Requires the FCC to issue rules extending customer service requirements to DBS, voice, and broadband service provider, including requirements that customer service is accessible for those with disabilities.
• Requires the FCC to issue rules requiring providers to maintain recordings of customer service calls for not less than one year and to release those recordings to a customer upon that customer's request.
• Bans "skip waiting" service fees.
• Requires the FTC to issue rules with respect to telephone providers, cable providers, DBS providers, and internet providers to implement standards for missed service appointments.
• Requires the FTC to issue rules with respect to telephone providers, cable providers, DBS providers, and internet providers to assess the burden of returning equipment for those with disabilities and/or non-drivers.

"In a time when junk fees are ubiquitous, the Outage Refund Act turns the tide by requiring providers to automatically credit consumers receive cable, phone, and internet outages," said Susan Weinstock, CEO of the Consumer Federation of America. "The bill places the responsibility in the right place - the consumer should not be expected to beg for refunds on services they didn't get. The Consumer Federation of America wholeheartedly supports passage of this legislation."

"People rely on cable, internet, and telephone services to work, see healthcare providers, and stay in touch with family and friends, so long-term outages can be devastating," said Olivia Wein, senior attorney at the National Consumer Law Center. "This bill eases the pain by ensuring that telecommunications providers issue refunds when they fail to deliver the services people rely on and pay for."

"When a business doesn't deliver the services people pay for, customers are owed a refund. This bill ensures that telecommunications providers are no exception to this common sense rule," said Patrick Crotty, senior attorney at the National Consumer Law Center.

The Outage Refund Guarantee Act is supported by Public Knowledge and the National Consumer Law Center, on behalf of its low-income clients.

Full text of the legislation can be found here.

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