Arlington, VA — The American Consumer Institute (ACI) has submitted comments to the Federal Communications Commission (FCC), opposing the Commission’s recent proposal to mandate industry-wide handset unlocking requirements. ACI argues that the FCC’s proposal lacks legal authority and fails to consider the adverse economic impact on consumers, especially those with lower incomes.
Read the full comment here.
Key Takeaways:
- Economic Impact on Consumers: Uniform handset unlocking requirements would increase costs for consumers without substantial consumer benefits, potentially pushing internet access further out of reach for lower-income individuals.
- Lack of Empirical Support: The FCC’s Notice of Proposed Rulemaking (NPRM) fails to provide a thorough cost-benefit analysis or empirically validate claims that unlocking requirements would enhance competition or reduce consumer switching costs.
- Legal Overreach: The FCC’s reliance on Title III of the Communications Act to regulate handset financing lacks clear statutory authority, raising serious legal questions about the rule’s legitimacy.
The American Consumer Institute strongly urges the FCC to withdraw its proposed unlocking rule and instead focus on regulatory measures that genuinely protect consumer interests. Before imposing industry-wide regulations, ACI recommends that the FCC seek specific Congressional authorization and ensure that any actions are backed by robust economic analysis.
For media inquiries, please email [email protected] to inquire about the above content.
The American Consumer Institute is a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.