TracFone Settles with FCC Over Locked Phones
TracFone has reached an agreement with the FCC concerning its policies for unlocking handsets. In February of this year it became mandatory for all carriers to unlock customer handsets and to properly disclose their unlocking policies to customers. TracFone did not have any sort of process for unlocking handsets in place, nor did it inform customers of their rights. Even so, TracFone later told the FCC multiple times that it was in compliance with the law. In order to settle with the FCC, TracFone agreed to transition to unlockable phones. It will allow eligible customers to receive new unlocked handsets, receive credit towards a new handset, or receive a partial cash refund in exchange for an unlocked handset. "Unlocking of cell phones has been widely embraced by the wireless industry and by consumers across the country," said Travis LeBlanc, Chief of the Enforcement Bureau. "Today's agreement ensures that millions of eligible TracFone customers will be able to use their phones on any compatible network they choose." TracFone has about 8 million customers, many of which should be able to benefit from today's enforcement action. TracFone has until September 1 to clearly notify customers about its new policies and when those customers will be eligible for unlocked devices. By May 2016, TracFone will need to launch some unlockable handsets and allow eligible customers to trade-in or receive credit. By December 2016, all phones launched by TracFone must be capable of being unlocked.
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Verizon has reached an agreement to buy TracFone, the country's leading prepaid mobile provider and largest reseller of wireless services. TracFone operates a family of value-oriented brands that includes StraightTalk, Net10, Simple Mobile, Total Wireless, PagePlus, Walmart Family Mobile, SafeLink, and ClearWay.
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