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 The California Alliance For Consumer Protection
37 Derow Court, Sacramento, Ca. 95833
(916) 923-2215 fax (916) 923-2216
www.consumeradvocacy.com * ssorleahcim@comcast.net
“Competition Is The Highest Form Of Consumer Protection”
Legislative Proposal
VACATION STATUS FOR SERVICES
Problem:
People who travel over a month in duration are required to pay fees for services even though they do not use those service. This awards service providers with a “bonus” – “they collect the money, but don’t have to provide the service(s)”.
EXAMPLE:
On a recent extended 2 month vacation to Asia, I was required had to pay service fees for services that were not used. The services were/are:
a) Internet $50 a month
b) Garbage/Sewer $50 a month
c) Phones
a. Cell $40 a month
b. Land $30 a month
d) Cable & Satellite Signal Providers $50 a month
e) Insurance – car $100 a month
Tentative Total $300 + a month times 2 months
NOTE: These fees do not include local government taxes, as well as “service billing charges” (services like SMUD are allowed to charge each customer $5 for the privilege of using their service AND receiving a bill).
SOLUTION:
Allow consumers the opportunity to put their services “ON HYBERNATE” while they are traveling. In order to do so, they should be able to contact the service provider and the companies should be able to charge a “small” fee to those who request the service. The perfect example of how this can work is seen in the newspaper industry: they allow you to turn your subscription on and off, and do not charge you for days/weeks/periods when you do not receive or use their service. The technology is available for all of those above listed service industries, yet the practice is not utilized.
SUPPORT:
1) Consumer Groups
2) Individual Consumers
3) Service providers
OPPOSITION
1) Service Providers
ARGUMENTS IN SUPPORT
1) This will save consumers money
2) The number of people this will affect is small and thus won’t affect a company’s financial bottom line.
3) Good niche marketing tool.
ARGUMENTS IN OPPOSITION
1) To implement this program will cost money
2) Overall, cities and other organizations that run on tight budgets will lose money.
FISCAL EFFECT: Unknown
CODE SECTION AFFECTION: As per Legislative Counsel
LANGUAGE ATTACHED: Yes – Language outlined below as follows
1) Intent Language – it is the intent of the legislature to enhance the consumer service industry by ensuring that consumers get what they pay for.
2) Definition of Service Areas. The service areas to be covered include, but are not limited to:
a. Internet
b. Cable and Satellite services
c. Phones – Land lines and cell
d. Insurance
e. Garbage/Sewer
3) Language: Consumers who are gone for more than one billing period may, at their choice, place their service on hold or hibernation for a nominal fee.
4) The fee shall not exceed the cost to provide the consumer with the service or $5 which ever is lower.
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