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MAR. 13, 2008 - NEW GAO REPORT FINDS FAULT WITH FCC ENFORCEMENT
Report Highlights Need for Greater Consumer Protections
WASHINGTON, D.C. – Today Representative Edward J. Markey (D-MA), chairman of the House Subcommittee on Telecommunications and the Internet, released a report from the Government Accountability Office (GAO) that highlights serious shortcomings in the responsiveness and effectiveness of the Federal Communications Commission’s (FCC) processing of consumer complaints about violations of telecommunication laws and rules. The report underscores the need to ensure that consumer protection enforcement mechanisms are sufficient and realistic, as outlined in draft legislation addressing new, national consumer protection rules for the wireless industry circulated by Chairman Markey last month.
"Without an effective
FCC enforcement program, consumers are left out in the cold. Moreover, the
GAO's report makes clear that any legislation establishing national consumer
protection rules for the wireless market, must have meaningful, supplementary
enforcement at the state level. Unfortunately, solely relying upon FCC
enforcement for consumer protection is utterly unreasonable in light of the
GAO's findings," said Chairman Markey.
The GAO found that:
The
FCC receives about 100,000 complaints from individuals and companies every
year. The FCC investigated approximately 10 percent of complaints received
between 2003 and 2006 and closed 83 percent of those investigations with
no enforcement action.
The
FCC's Enforcement Bureau has no specific enforcement goals, does not have
a strategy for enforcement actions and does not track of the effectiveness
of enforcement actions.
FCC's
Enforcement Bureau uses five separate databases, in addition to manually
searching tens of thousands of paper case files, in order to track
enforcement activities. The database contains no standard information on
why the vast majority of investigations are closed with no enforcement
action.
Chairman Markey circulated draft legislation on wireless
issues last month which includes provisions to improve consumer protection by
empowering state authorities to enforce national consumer protection standards
established by the FCC. On Feb. 27th, Chairman Markey held a hearing
on this draft proposal. (Draft
legislation and hearing statement available here.)
"In order to fulfill
its mandate to protect consumers, ensure public safety and encourage
competition, the FCC must be an effective enforcer of our telecommunications
law. If it is not doing the job, reform existing procedures and bolster the
resources at the commission to protect consumer welfare and ensure fair
competition," concluded Chairman Markey.