| Releases & Statements
Contact: Anat Jacobson, Press Secretary
P: 212-669-4743 C: 646-321-4400
Standing outside a cell phone retailer on the Upper East Side,
Public Advocate Betsy Gotbaum today released a comprehensive guide
to cellular phone plans and services and cautioned New York consumers
about possible hidden costs associated with these plans. Gotbaum
announced that she intends to introduce legislation that would
require cell phones stores to post signs detailing all costs and
informing customers of their rights.
Gotbaum’s guide reveals that
customers are often subject to additional cancellation fees at
authorized dealerships. Researchers went to stores in 10 neighborhoods
and found them highest in neighborhoods such as the Upper East
Side, Chinatown, Hell’s Kitchen, Jackson Heights, and Corona.
Fifty-one percent of stores visited by Gotbaum’s staff charged
substantially high contract cancellation fees in addition to fees
established by the national provider. Gotbaum’s 11:00 A.M.
announcement was held in front on one of these stores, Planet
Wireless, located at 1318 1st Avenue, between 70th and 71st Streets.
“People are being ripped off
by stores that charge double cancellation fees. My guide empowers
New Yorkers to become smarter consumers by asking about additional
fees, hidden costs, or even possible discounts,” said Gotbaum.
The additional cancellation fees can
run anywhere from $50-$400 per plan. This does not include the
early contract cancellation fees charged by national providers
such as Sprint, Verizon and Nextel, which can amount to anywhere
between $150-$240.
Gotbaum’s guide provides details
about which plans offer the best reception, what kinds of contracts
are offered by the various companies, and how to recycle old cell
phones. It also provides a comparison of pros and cons for contract
lengths and choosing whether to buy at a storefront or directly
from the provider.
The guide also informs consumers that
they might possibly qualify for discounts on various cell phone
plans. City of New York employees, for example, qualify for a
20 percent discount from one of the major national providers.
Private sector employees may also be eligible for reduced plans
if their employers participate in an employee discount program.
“New Yorkers should be aware
of many factors when purchasing a cell phone and service plan.
This guide provided released by my office goes into great detail
about details that need to be taken into consideration. As with
many other purchases, there are sometimes hidden costs involved.
While there are some benefits to choosing an authorized dealer
over a “corporate” store, consumers should be concerned
about these additional cancellation fees,” said Gotbaum,
who noted that New York City’s taxes on cell phone bills
are among the highest in the nation.
The guide, titled CELL PHONE SAVVY: A GUIDE TO GETTING THE MOST
OUT OF YOUR CURRENT AND FUTURE CELL PHONES AND AVOIDING BEING
OVERCHARGED IN NYC NEIGHBORHOODS, is available online at www.pubadvocate.nyc.gov
or by calling the Office of the Public Advocate at 212-669-7200.
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