FCC Proposes ETF Rules

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posted Jun 12, 2008, 3:20 PM   by Eric M. Zeman

During its meeting today, the Federal Communications Commission took formal steps towards creating a government-monitored system for early termination fees. Under the terms of Chairman Kevin Martin's proposal, the amount of the ETF would be related to the actual retail price of the phone. So a $100 phone would have a higher ETF than a $50 phone. He also mandated that ETFs be prorated and reduced over the length of a cell phone contract, and that contracts not be an unreasonable length of time. AT&T and Verizon Wireless already prorate their ETFs. Martin did not offer specifics on what government body would monitor ETFs, nor did he say that any federal program would preempt state governmental rights. He also said that contracts that are extended should not necessarily have their ETFs reinstated. Martin allowed that the current proposal would not prevent class action lawsuits regarding ETFs against certain carriers from moving forward.

more info at Associated Press »

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