Cell Phone Lemon Law Passes Illinois House of Representatives

Press Release - May 2, 2007

The Illinois House of Representatives passed a new “cell phone lemon law” earlier this week, which, if approved by the Senate and Governor, will let customers out of wireless service agreements if their handset malfunctions on three or more occasions.

The bill also stipulates that consumers be given the option to easily upgrade or downgrade their phone model in the event of a malfunction, by paying or being refunded the difference. An additional proposal could force carriers to pay customers up to $25 for each day their contract-bound handset is out of service.

“When someone buys a cellphone that turns out to be defective, they have to go back to the provider for a repair or replacement,” commented Rep. Susana Mendoza, who sponsored the House legislation. “When this happens repeatedly, it burdens customers both in terms of time and money lost, but also with increased frustration. Cellular providers have an insufficient incentive to be responsive because the consumer is usually locked into a long-term contract.”

Joe Farren, a spokesman with CTIA: The Wireless Association, disagreed with this statement, however, and dismissed the new legislation as unnecessary.

“Wireless consumers have an abundance of choice when it comes to hand-held devices and surveys consistently show they are satisfied with both the operation and functionality of their handsets. It is the rare exception and certainly not the rule for a device to malfunction,” Farren commented. “Because the market for wireless handsets is so competitive, every manufacturer has a huge incentive to produce an exceptional device. If they don’t, they won’t be in business for very long. I can’t imagine a greater ‘regulator’ than that.”