This Act mandates automatic service credits for customers experiencing outages of four hours or more, requires refunds upon service termination, and establishes new customer service and outage reporting standards for major telecommunications providers.
Ben Luján
Senator
NM
The Outage Refund Protection Act mandates that cable, satellite, internet, and telephone providers automatically credit customers for service outages lasting four hours or more, as well as upon service termination. This bill also requires the FCC and FTC to establish new rules improving customer service, transparency, and handling of missed appointments for large providers. Furthermore, it requires broadband providers to report service outages to the FCC following disaster declarations.
New Outage Refund Protection Act Mandates Automatic Credits for 4-Hour Service Disruptions
We’ve all been there: your internet cuts out right in the middle of a deadline, or your cable goes dark during the big game, and you’re left spending an hour on hold just to beg for a five-dollar credit. The Outage Refund Protection Act aims to flip that script. The bill requires cable, satellite, internet, and phone providers with more than 5,000 customers to automatically credit your account if your service is down for a continuous block of at least four hours. You won't have to call in and argue with a bot; the credit is calculated as 1/30th of your monthly bill for every day an outage occurs (Section 3). It even covers you when you cancel your service, requiring providers to settle up any remaining credit balances within 30 days via check, electronic transfer, or a no-fee debit card.
The End of the Customer Service Runaround
Beyond just the money, this bill takes a swing at the ‘customer service loop’ we all dread. Under Section 4, the FCC and FTC are tasked with setting new standards that actually respect your time. This includes a mandatory callback option so you don't have to stay glued to your phone waiting for a representative, and a requirement for companies to keep recordings of your service calls for at least a year. If a provider claims they promised you one thing but did another, you (or your agent) have the right to request that recording. For anyone who has ever been told "we have no record of that conversation," this is a significant shift in leverage back to the consumer.
Practical Fixes for Real Life
The bill also addresses the logistical headaches of modern tech, specifically targeting missed service appointments and the "equipment return" gauntlet. The FTC will be setting new standards for when a technician stands you up, and they are specifically looking at making equipment returns easier for people with disabilities or those who don't drive. If the FTC finds the current system is too burdensome, they can force providers to offer alternative return methods at no extra cost (Section 4). For a busy professional who can't take a second afternoon off work or a senior who can't carry a heavy DVR to a shipping center, these provisions move the needle from "annoying" to "manageable."
The Fine Print and Loopholes
While this is a win for the average household, there are a few details to keep an eye on. First, the "automatic" credit only triggers for continuous outages of four hours or more. If your internet flickers on and off all day but never stays down for four straight hours, the bill doesn't technically require a credit. Additionally, companies are off the hook if the outage is for "pre-planned maintenance" and they told you about it in advance. While the bill sets a federal floor for these protections, it explicitly allows states to pass even stricter laws, meaning your local protections could eventually go even further than these new federal requirements.