Outage Refund Protection Act
- Bill Number
- S. 4557
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Science, Technology, Communications
- Status
- Introduced
- Latest Action
- 2026-05-18: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Last Updated
- 2026-06-05T19:35:09Z
AI-Generated Summary
Purpose This legislation, titled the Outage Refund Protection Act, aims to protect consumers by requiring certain communications service providers to issue automatic refunds or credits for service outages lasting 4 hours or more and to improve customer service standards.
Key Provisions
- Definitions: Applies to cable providers, direct broadcast satellite (DBS) providers, internet providers, and telephone providers (including wireless, wireline, and VoIP services) with more than 5,000 customers.
- Automatic Credits for Outages: Providers must credit a customer's bill for 1/30 of the monthly rate for each day of a qualifying outage (4+ hours). This covers cable, satellite, internet, and telephone services; it also applies when a customer terminates service.
- Refunds Upon Termination: Excess credits must be refunded within 30 days via check, no-fee prepaid debit card, or electronic transfer (customer's choice), with an exception if the refund amount is below the cost of disbursement.
- Exceptions: Pre-planned maintenance (with advance notice) is excluded from refund requirements.
- Enforcement and Rules: The Federal Communications Commission (FCC) must issue implementing rules, including penalties, within 18 months. The bill does not preempt stricter state laws.
- Customer Service Improvements: The FCC must extend existing cable customer service rules to other services, require call recordings for at least 1 year, and prohibit fees for callbacks. The Federal Trade Commission (FTC) must set standards for missed appointments and equipment returns for individuals with disabilities or mobility limitations.
- Outage Reporting: Broadband providers must report outages to the FCC during activations of the Disaster Information Reporting System.
Significant Changes to Existing Law The bill introduces new federal mandates for automatic, pro-rated refunds tied to service outages across multiple communications sectors, which are not currently required uniformly. It expands customer service obligations beyond cable to include voice and broadband services and adds record-keeping and accessibility requirements. It also establishes dual-agency enforcement (FCC for core rules, FTC for specific consumer protections) and clarifies federal-state interaction by preserving stricter state authority.
Potential Impacts
- On Government Agencies: Increases FCC and FTC rulemaking and enforcement responsibilities, including monitoring, penalties, and disaster-related reporting.
- On Citizens: Provides automatic financial relief for service disruptions and enhanced customer service options, particularly for people with disabilities.
- On International Relations: Minimal direct effects, as the bill focuses on domestic providers and U.S. customers.
- On Providers: Requires operational changes for billing systems, record retention, and compliance, with potential costs for smaller entities near the 5,000-customer threshold.
Main Stakeholders Affected
- Large communications service providers (cable, satellite, internet, and telephone companies).
- Consumers and customers of these services.
- Federal agencies (FCC and FTC).
- State governments and regulatory bodies.
Notable Legal, Constitutional, or Political Implications The bill relies on Congress's authority to regulate interstate commerce through the Communications Act framework. It includes explicit preemption language that allows states to impose stricter rules, potentially leading to varied compliance across jurisdictions. Enforcement provisions grant the FTC injunctive authority under existing law, and the 18-month rulemaking timeline sets a clear implementation deadline.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-05-18: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2026-05-18: Introduced in Senate
Bill Versions
- Outage Refund Protection Act — issued 2026-05-18 — PDF (11 pages)