Texas House Bill HB1954

Texas 2009 - 81st Regular

Caption

Relating to the provision of Internet service to consumers.

Impact

If enacted, HB 1954 will amend the Business & Commerce Code in Texas, incorporating a new chapter specifically focused on the provision of Internet services to consumers. The changes would mean that any contract offering Internet service that includes a cancellation fee will be rendered void and unenforceable. This change is especially relevant in today's digital age, where consumers have a plethora of service providers to choose from, and the ability to switch providers without penalty can encourage competition and improve service quality.

Summary

House Bill 1954 aims to enhance consumer protection in the realm of Internet services by prohibiting Internet service providers (ISPs) from imposing cancellation fees on contracts. Specifically, the bill states that contracts for Internet service must allow consumers the right to cancel their agreement without facing any financial penalties. This provision is designed to provide more freedom and flexibility to consumers in managing their Internet service contracts, ensuring they are not locked into terms that are unfavorable or that they might wish to exit before the contract term ends.

Contention

While the bill is designed to protect consumers, it may spark discussion among ISPs worried about the potential financial implications of losing cancellation fees. Some industry stakeholders might argue that such provisions could reduce the incentives for ISPs to invest in infrastructure improvements or provide high-quality services, as the financial cushion from cancellation fees could help mitigate risks associated with customer churn. Thus, the bill highlights a balance between consumer rights and the business interests of telecommunications companies.