8th Circuit
The 8th Circuit Court of Appeals, which governs Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota, recently overturned a law that claimed to provide additional “consumer protections” for wireless users. In reality, it threatened to reduce consumers’ wireless choices and increase their wireless costs. Wireless consumers in these states can rest easier since the court judged these costly new regulations unacceptable.You can stop other states from passing costly and confusing state taxes and regulations. Ask your Senator to support the Senate Communications Bill which will create one national policy for wireless services.
Overstepping the Bounds of Regulation
In May 2004, Minnesota Attorney General Mike Hatch signed into law the “Wireless Consumer Protection Act.” The Act was passed under the guise of “protecting wireless consumers” by imposing special rules for wireless service contracts -- rules that did not apply to other contracts affecting Minnesota consumers.
In reality, this law would not have protected consumers. Instead, it would have created inflexible, complicated regulations that would have ultimately reduced consumer choice, increased consumer confusion, and raised consumer costs. Consumers would have been facing mounds of unnecessary paperwork just to make simple adjustments to their wireless service plans.
These state regulations would have done nothing to improve wireless quality, or expand coverage. In fact, the state-specific regulations would likely have increased companies’ costs of doing business in Minnesota. The costs would have been passed on to consumers in the form of higher rates.
Let Freedom Reign
Fortunately, the 8th Circuit Court of Appeals ruled that the law was impermissible because Congress has determined that wireless service should be regulated at the Federal level. So for now, consumers continue to benefit from a dynamic environment, where wireless companies compete for their business. This has produced lower prices, more innovation, more choices, and better value than a patchwork of state-specific regulations could ever do. And, there are plenty of national regulations on wireless that ensure this robust competition, and its benefits to consumers, will continue to thrive.
One National Policy for Wireless
Consumers across America deserve the freedom to make their own choices, and the freedom to access innovative wireless products and services at affordable prices. Right now, Policymakers in Congress and at the Federal Communications Commission (FCC) can promote a better wireless future. With a consistent national policy for national wireless services, policymakers in Washington can help relieve wireless consumers of the cost and confusion of scores of state laws and regulations. You can help lower taxes and end confusing regulations by supporting the Senate Communications Bill currently being debated in the U.S. Senate. Click here to learn more and show support for one national policy for wireless services.