Like a broken record, the FCC continues to try to micromanage every aspect of the telecommunications industry. The latest effort is a 3-2 split decision to begin an Inquiry into the customer service of the telecommunications and cable industries. The Notice of Inquiry (Notice) in Docket 24-472 was released on October 23, 2024, with industry comments due on November 22, 2024.
The problem with the latest Inquiry, just as with many of the proceeding ones, is that the agency clearly has already arrived at a conclusion before the industry comments are even filed. And, the conclusion is clear, the customer service provided by our industry is lacking and must be closely regulated. Witness a Statement issued by FCC Chairwoman Jessica Rosenworcel:
Hundreds of thousands of consumers reach out to the Federal Communications Commission each year. They file complaints because they have run into issues canceling their service, are saddled with unexpected charges, are upset by unexplained outages, and are frustrated with billing issues they have not been able to resolve on their own. Many describe being stuck in “doom loops” that make it difficult to get a real person on the line to help with service that needs repair or to address charges they believe are a mistake. We cannot ignore these complaints, especially not when we know that it is possible to do better. That is why today we start this inquiry. We seek to understand the state of customer service in communications—from top to bottom and inside and out. We want to help improve the customer experience, understand what tools we have to do so, and what gaps there may be in the law that prevent consumers from having the ability to resolve routine problems quickly, simply, and easily. I look forward to the record that develops in response.
In the Notice, the Commission seeks comments on the following aspects of customer service:
Simple Cancellation – Requiring providers with more cancellation options and better disclosure of cancellation practices at the point of sale and on bills. The agency seeks to confirm whether service providers make available simple and direct cancellation methods to their subscribers? If not, it asks whether there are reasons to explore whether providers should offer more than one mechanism to cancel subscription services, including cancellation mechanisms that mirror any available method that consumers can use to subscribe to the service?
Automatic Renewal of Service – Ensuring providers obtain explicit customer consent for broadband and voice service providers before automatically renewing a service and/or increasing prices after a trial or promotional period expires.
Access to Live Representatives – Helping to avoid bouncing consumers from one call menu list to another in a time-consuming effort to obtain resolution. The commission is actively considering requiring companies to allow customers to reach live representatives by dialing “O” at any time and mandating a time limit for customers to reach a live person.
Installation, Outage, and Service Calls – Extending cable operator installation, outage, and service call rules to also apply to satellite TV, voice, and broadband services. These include:
(1) “standard installations” will be performed within seven business days after an order is placed; (2) under normal operating conditions, the cable operator will begin working on “service interruptions” promptly and no later than 24 hours after the cable operator becomes aware of the interruption; (3) the “appointment window” for service calls and installations must be at a specified time, or at maximum, a four-hour time block during normal business hours, however “the operator may schedule service calls and other installation activities outside of normal business hours for the express convenience of the customer;” (4) any operator cancellation of an appointment must occur before the close of business on the business day prior to the scheduled appointment; and (5) representatives of cable operators running late for an appointment must contact and inform the consumer of the delayed arrival and, if necessary, reschedule the appointment at a time convenient for the customer.
Individuals with Disabilities – Improving the accessibility of customer service resources for individuals with disabilities.
Expanded Cable Customer Resources – Updating current cable operator customer service requirements to reflect marketplace and technology changes.
FCC Commissioner Brendan Carr, per usual, is vehemently opposed to the Notice, thus, he issued his own statement. He notes.
Enter today’s “customer service” Notice of Inquiry. It seeks comment on whether companies should allow callers to press “0” to reach an operator or some other number instead, whether customer service centers are located in convenient locations or not, whether the FCC should review and regulate the voluntary fees some customers may pay to skip service wait times, or whether AI technologies should be allowed to operate as an equivalent or alternative to live service representatives. And in many cases, the actions explored by the NOI would require the FCC to go well beyond the bounds of our authority under the Communications Act. Indeed, much of what the FCC considers here would fit more appropriately within the scope of the Federal Trade Commission’s jurisdiction. In fact, the FTC has opened up a proceeding to look at these types of things already. We should leave those cross-cutting consumer protection issues to the nation’s lead consumer protection agency—the FTC. We should color within the lines drawn by the Communications Act. And we should focus our time and resources on policies that will help bring more Americans across the digital divide.
As a result of the election, it is possible this Inquiry could sit in limbo, as Republicans regain an FCC majority. We will see. Next time, we’ll discuss the implications of a Republican-led FCC and FTC.