Wireless and the Law: May 2008 Archives

Verizon Wireless reminds customers who choose to talk on a wireless phone while driving to do so responsibly and safely when travelling over the holidays:

Drive Responsibly Drivers should use common sense and obey all vehicular laws if they choose to talk on a wireless phone while driving, whether across town or across the country. Verizon Wireless offers the following reminders for using a wireless phone or service responsibly while driving:

When behind the wheel, safe and responsible driving is always your first priority.

• Using a wireless phone while driving may increase your risk of distraction, whether or not you use a hands-free device. To eliminate this risk, consider turning your phone off and allowing calls to go to voice mail. If you choose to talk and drive, always use a hands-free device. Make sure your hands-free device is on and working before you begin driving.
• Turn your phone to speakerphone or use a headset. Many phones have speakerphone capability. Headset models available from Verizon Wireless range from Bluetooth(R) devices for individual use to hands-free ear buds compatible with devices from many wireless providers.
  
• Do not manually dial or look up phone numbers when driving. Pre-program important and frequently dialed numbers and use the voice-activated and speed-dialing features of your phone.
• Never view or send text or multi-media messages or video downloads while driving.
• If you're taking advantage of any navigation service, including VZ Navigator(SM), program the address into your phone -- either directly to the handset or online -- before you leave the curb; then you'll need only to listen to the directions.
• Do not engage in complex, stressful or emotional calls while driving.The risk of using a wireless phone while driving may be increased during hazardous traffic or weather conditions. When driving in these conditions, consider turning your phone off and allowing calls to go to voice mail.
  

Verizon Wireless is committed to educating the public on the safe and responsible use of wireless phones while driving. For more information on hands-free options and responsible driving, customers can visit a Verizon Wireless Communications Store or http://www.verizonwireless.com.

The head of the FCC said  he wants to regulate fees charged to cell phone users who cancel their wireless contracts early, reports the Associated Press.

At a news conference, FCC chief Kevin Martin said he supports regulating the fees at a federal level, even if it affects a series of class-action lawsuits against carriers in state courts.

Dovel & Luner LLP today announced that a Los Angeles jury has found Sprint Nextel  liable for infringing two patents owned by California company Enovsys LLC. The jury returned its verdict late Friday, May 16, 2008, and awarded Enovsys past damages of $2.78 million.

The patents relate to a privacy system used to protect and manage the disclosure of the precise location of a user’s cell phone (e.g., the phone’s GPS position). Enovsys had alleged that Sprint Nextel’s wireless networks use the patents in managing location-based services provided by the nation’s third largest wireless carrier. Testimony at trial showed that Sprint Nextel is the market leader in the growing field of location services and saw a 50% increase in related revenues in 2007 over the prior year.

Inventors Mundi Fomukong and Denzil Chesney applied for the first of the patents in 1997, several years before location services were first offered for cell phones. Enovsys is an intellectual property holding company privately held by inventor Fomukong.

During The Federal Trade Commission's Town Hall meeting on May 6-7, 2008, FTC commissioner Jonathan Leibowitz announced that the FTC intends to take enforcement action against deceptive or unfair content offers from cellphone content providers who should do a better job of showing costs consumers pay for downloading services for their mobile pone at

Leibowitz noted that messaging, games and video services marketed to children and teens are a great concern.

The Center for Digital Democracy and the U.S. Public Interest Group announced, they will  petition the FTC to probe privacy issues in the mobile space

A webcast with transcripts of the event is available at at the FTC website.

The Center for Digital Democracy and the U.S. Public Interest Research Group (USPIRG) announced today that they intend to amend their 2006 complaint on interactive marketing techniques and threats to consumer privacy to include newly emerging mobile marketing practices.

The announcement was made as part of the testimony given today by Jeff Chester, executive director, Center for Digital Democracy (CDD), at the Federal Trade Commission’s “Beyond Voice: Mapping the Mobile Marketplace,” a two-day “Town Hall” meeting. Chester spoke on the “Mobile Advertising and Marketing” panel. CDD and USPIRG’s November 2006 complaint directly led to the FTC’s current inquiry into online advertising and privacy, contributing to the release of proposed consumer protection principles for online marketing issued last December.

In the upcoming amended complaint, the marketing-oriented technologies that are helping shape the mobile platform will be addressed. It will discuss, for example, the implications of the so-called “Personalization Engine” from Enpocket, which describes it as a system of analytical models that scores mobile users based on their past behavior. It enables us to predict which products and services a customer might purchase next. That way, we can provide the right message, advertisement or promotion to the right person at the right time. It can also forecast events, such as customer churn and will recommend effective customer engagements to preempt attrition. When integrated with the Marketing Engine, the result is highly relevant marketing messages, personalized recommendations, less churn, and higher sales of mobile consumables.

PhonepayPlus, a regulating watchdog agency in the UK announced it will  review of the U.K.'s mobile premium services due to consumer complaints. That included:

• In the first three months of this year, PhonepayPlus received more than 4,500 complaints related to mobile. This equates to 80% of all complaints received, a 40% increase on mobile related complaints over a similar period last year;
• In 2007, PhonepayPlus adjudicated on 33 mobile services with total fines in excess of £360,000;
• By March 2008, PhonepayPlus had already adjudicated on 15 mobile services, resulting in fines of £223,500. Today, PhonepayPlus published adjudications on four more cases, resulting in fines of £68,000; and
• 45% of premium-rate numbers and short codes checked by consumers on PhonepayPlus' website this year related to mobile services, as comparedto 24% this time last year.

PhonepayPlus aims to publish a review in July to  provide an overview of mobile phone-paid services, and
identify issues affecting UK consumers. Of particular interest to PhonepayPlus at this early stage are:

• Unsolicited promotions, especially text messages;
• Price transparency and the use of words that indicate content is 'free'; and
• Subscription services (e.g. ringtones) and the 'STOP' command