FCC Informal Complaints Rule Change Raises Barriers to Justice

Written by CDT summer intern Alicia Loh

Last Thursday, the Federal Communications Commission (FCC) approved a seemingly small change to the language of its informal consumer complaints process that may have a huge practical effect on consumers. The change undermines the effectiveness of the informal complaint process, forcing consumers to use the more difficult and costly formal complaint process to get help from the agency.

When consumers have problems related to something under FCC jurisdiction, they can file either an informal or formal complaint with the FCC. Informal complaints are cheaper and easier to file and are therefore the more accessible choice for the average individual. Around 30,700 informal complaints were filed in June 2018, slightly above the 25,000 to 30,000 average number of informal complaints filed each month. In comparison, only three formal complaints were filed that month.

The formal complaint process is designed to be more expensive and more elaborate; while informal complaints are free, it costs $225 to file a formal complaint. Informal complaints can be made by filling out a form on a website, but filing a formal complaint requires meeting specific requirements for formatting and content under the FCC’s rules. Formal complaints are more like court proceedings where the parties are represented by lawyers or experts in communications law. In these proceedings, consumers may pay for the services of an attorney, but even if the consumer wins, no attorney fees are awarded.

Before the rule change, the FCC would review informal complaints and work with consumers and companies to fix the problem. Under the previous model, the FCC’s role in the informal complaint process has led to real results, and the Enforcement Bureau of the FCC has addressed the substance of a few complaints. The new change forwards informal complaints directly to the companies without any review by the FCC. Consumers were always encouraged to contact companies before filing an informal complaint, but now, the FCC merely sends consumers back to their communications companies. Without FCC review, companies will have less incentive to take the concerns of consumers as seriously.

The change in the language of the rule may also allow companies to avoid consumer complaints. The Commission no longer “will” set deadlines for companies to respond to informal complaints but rather “may” set a deadline. In other words, the FCC may choose to never set a deadline, removing pressure on the company to respond. Additionally, by deleting the language “review and disposition,” FCC staff may not have the authority to review and act on informal complaints.

The changed rules relate to many of the core issues impacting consumers, specifically “availability, billing, privacy, or service,” which includes things like slow speeds, service outages, billing errors, data caps, and overage charges. Consumers are placed in a hard position where the value of their problem may not justify the costs of a formal complaint but is still serious enough to disrupt their daily lives. Without an effective informal complaint process, companies may be able to avoid FCC sanctions for bad behavior when consumers are unable to spend the time and money necessary for a formal complaint.

This rule change raises significant barriers to justice for consumers, who already had limited remedy before the change occurred. The informal complaints process needs to be reevaluated to ensure that the FCC genuinely helps the tens of thousands of consumers that rely on its services each month.