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Bill

Bill

S 4557

Outage Refund Protection Act

119th Congress

Automatic four-hour outage credits to customers of major providers, with refunds tied to outage duration and service type.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 4557

Overview

The Outage Refund Protection Act (S.4557, 119th Congress) proposed by Senator Lujan aims to automatically refund customers of certain communications providers when their services are not working for a defined period. The bill covers cable, direct broadcast satellite (DBS), internet, and telephone services and sets specific refund mechanics, service standards, and enforcement provisions. It also directs federal agencies to establish related customer service improvements and rules.

Main purpose and intent

  • Ensure automatic refunds to customers when a service outage or outage-related issues persist for four hours or more.
  • Establish uniform refund credits tied to the duration of the outage and the type of service.
  • Improve transparency and accountability in customer service practices across major communications providers.
  • Create federal rules and potential state flexibility to implement or augment these protections.

Key provisions and changes

  • Definitions (Section 2):

    • Identifies eligible providers by service type and a minimum customer threshold (more than 5,000 customers):
    • Cable providers
    • DBS providers
    • Internet providers (broadband)
    • Telephone providers (wireless, wireline, and VoIP)

  • Refunds (Section 3):

    • For each service category, a four-hour outage triggers an automatic credit:
    • Cable, DBS, Internet, and Telephone: credits are 1/30 of the monthly rate per day of outage (for each 4-hour block of outage).
    • Refund mechanics after service termination:
    • If a customer terminates service, credits that exceed the amount due on the billing statement must be issued within 30 days after the outage, via check, no-fee prepaid debit card, or electronic transfer.
    • Refund caps and costs of disbursement:
    • Providers are not required to issue a refund if the credit would exceed the cost of disbursement through allowed methods.
    • Providers may restrict refund methods to limit disbursement costs.

  • Pre-planned maintenance (Section 3(e)):

    • Excludes outages due to planned maintenance for which customers were informed in advance.

  • Enforcement and preemption (Section 3(f), Section 3(g)):

    • FCC must issue implementing rules within 18 months of enactment, including penalties for noncompliance.
    • State laws with stricter intrastate requirements are not preempted; states may impose higher protections.

Customer service improvements (Section 4)

  • FCC rules (within 18 months) to require:
    • Extension of customer service standards to DBS, voice, and broadband as applicable; accessibility for people with disabilities.
    • Maintenance of customer service call recordings for at least one year and provision of recordings upon request.
    • Prohibition on charging fees for waiting to speak to a live representative.
  • FTC rules (within 18 months) to address:
    • Standards for missed service appointments.
    • Burden of returning equipment for customers with disabilities or non-drivers; potential no-cost alternative return methods.
    • FTC enforcement via injunctions if necessary.

Service outages reporting (Section 5)

  • Requires broadband providers to report outages to the FCC when the Disaster Information Reporting System is activated, integrating outage data into public disaster reports.

Timeline and enforcement notes

  • Implementation deadlines: FCC and FTC rulemaking within 18 months of enactment; broader enforcement provisions would follow after rules are issued.
  • 18-month window for rulemaking on customer service improvements and oversight.
  • Preemption: State laws may impose stricter protections; federal provisions do not bar stronger state requirements.

Potential impact

  • Direct monetary credits for customers experiencing outages, improving compensation clarity.
  • Enhanced customer service transparency and accessibility across major providers.
  • Increased regulatory oversight with potential penalties for noncompliance.
  • Possible cost considerations for providers related to disbursement and refund administration, balanced by caps tied to disbursement costs.

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

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