NEW: State Official Slams Upgrade Fees for Cell Phones
Friday, April 13, 2012
Cell phone users probably won't be smiling over the latest fee being charged by Verizon
The fee will apply only to phones bought at a discounted rate, but most companies, experts note, offer discounts on virtually all their phones, meaning customers will likely be unable to avoid an upgrade fee.
The move has outraged Massachusetts officials, including Barbara Anthony, state Undersecretary of Consumer Affairs and Business Regulation, who took specific aim at the four major cell phone carriers: Verizon, T-Mobile, AT&T and Sprint. All now charge upgrade fees, with AT&T and Sprint charging the highest at $36. Verizon will charge $30. T-Mobile’s is the cheapest at $18.
“I am very concerned that consumers have little choice in the cellular phone marketplace except to pay this new activation fee when upgrading to a new phone,” Anthony said in a recent statement. “With the announcement this week by Verizon, all four cellular phone carriers are charging upgrade fees – in addition to the price of a new phone.”
She cautioned people to educate themselves before buying a new cell phone, saying, “Consumers need to closely examine the fine print when buying a phone, upgrading to a smart phone and entering into a cellular phone contract. Lower upfront costs may have hidden fees down the road in regard to data plans, directory service or other costs.”
Anthony advised customers to take steps to protect themselves, such as understanding what they are buying, negotiating the best pricing plan, not signing any contracts they don’t fully understand and paying attention to all terms of agreement. Buyers should get all information in writing before completing a purchase.
In some cases, Anthony acknowledged, carriers will wave upgrade causes, but they will often require a longer-term contract as a result.
“Consumers need to be their first and best advocate when making any significant and important purchase such as a cellular phone,” Anthony said.
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