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HB 1562

Consumer Protection - Telecommunications Service Outage - Automatic Credit (Automatic Telecommunications Service Outage Credit Act)

2026 Regular Session Introduced by Chao Wu

Maryland bill requires telecom providers to automatically credit accounts during service outages, eliminating need for customer complaints to receive compensation.

Hearing 3/13 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 1562

Legislative bill overview

HB 1562 would require telecommunications service providers to automatically credit customer accounts when service outages occur, without requiring customers to file complaints or requests. The bill establishes mandatory compensation standards for service disruptions, shifting the burden from consumers to prove their loss to providers to demonstrate service restoration.

Why is this important

Service outages affect millions of consumers who lose internet, phone, and television access, often without compensation. Currently, customers must actively pursue refunds or credits through company complaint processes—many don't bother. This bill would ensure automatic compensation, reducing administrative burden on consumers and creating financial incentives for providers to minimize outage duration and frequency.

Potential points of contention

  • Credit amount and outage duration thresholds: Unclear what constitutes a compensable outage (24 hours? 1 hour?) and how much credit customers receive, which could significantly impact provider costs and consumer benefits
  • Implementation costs for providers: Telecommunications companies may argue automatic credit systems require expensive infrastructure changes and could increase service costs for all customers
  • Definition and measurement of "outages": Disputes may arise over whether partial service loss counts, how providers measure outage scope geographically, and whether providers can exclude outages from force majeure events or customer-caused issues

Compiled from official sources — confirm details with the bill’s official record.

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