PRIA, Government Policy, Made Personal

Summary

Allows a servicemember to end certain consumer contracts without an early termination fee when they get military orders to move for at least 90 days to a place that can’t use the service, or when they signed a contract after a permanent move order and then get a stop-movement order that lasts at least 30 days or indefinitely and prevents using the service. Covered contracts include mobile phone service, regular telephone service, internet, cable or subscription video, gym or fitness plans, and home security, if the contract was signed before the orders. To cancel, the servicemember must give written or electronic notice plus a copy of the orders and the date service should end, delivered the way the industry normally handles cancellations. When a servicemember ends a contract this way, the provider must give written or electronic notice of the servicemember’s rights. Spouses or dependents in certain situations (death, catastrophic injury, accompanying the move) and some reserve or Guard duties are also treated the same for these rules, and family-plan rules let the contract signer end service for a servicemember or for all listed users if they all move. Providers cannot charge an early termination fee, but unpaid taxes or other amounts still must be paid. If the move is three years or less, the servicemember can keep their phone number if they re-subscribe within 90 days after the move ends. If they re-subscribe within that 90-day window, the provider may not charge a reinstatement fee beyond normal installation or equipment costs. Provider-owned equipment must be returned within 10 days after service ends. Any prepaid fees for time after termination must be refunded within 60 days, except for the remainder of the billing period when the contract ended. Definitions: commercial mobile service, military orders and permanent change of station, multichannel video programming service, provider-owned consumer premises equipment, and telephone exchange service are terms used with their usual legal meanings.

Title 50, §3956

War and National Defense, Source: USLM XML via OLRC

(a)Termination by servicemember or dependent of a servicemember

(1)Termination

A servicemember may terminate a contract described in subsection (b) at any time after—

(A)the date the servicemember receives military orders to relocate for a period of not less than 90 days to a location that does not support the contract; or

(B)the date the servicemember, while in military service, receives military orders for a permanent change of station, thereafter enters into the contract, and then receives a stop movement order issued by the Secretary of Defense or the Secretary of Homeland Security in response to a local, national, or global emergency, effective for an indefinite period or for a period of not less than 30 days, that prevents the servicemember from using the services provided under the contract.

(2)Notice

In the case that a servicemember terminates a contract as described in paragraph (1), the service provider under the contract shall provide such servicemember with written or electronic notice of the servicemember’s rights under such paragraph.

(3)Manner of termination

Termination of a contract under paragraph (1) shall be made by delivery of a written or electronic notice of such termination and a copy of the servicemember’s military orders to the service provider, delivered in accordance with industry standards for notification of terminations, together with the date on which the service is to be terminated.

(4)Additional individuals covered

For purposes of this section, the following individuals shall be treated as a servicemember covered by paragraph (1):

(A)A spouse or dependent of a servicemember who dies while in military service or a spouse or dependent of a member of the reserve components who dies while performing duty described in subparagraph (C).

(B)A spouse or dependent of a servicemember who incurs a catastrophic injury or illness (as that term is defined in section 439(g) of title 37), if the servicemember incurs the catastrophic injury or illness while in military service or performing duty described in subparagraph (C).

(C)A member of the reserve components performing military service or performing full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as such terms are defined in section 101(d) of title 10).

(D)The spouse or dependent of a servicemember, described in paragraph (1)(B), who accompanies such servicemember during the period of relocation.

(b)Covered contracts

A contract described in this subsection is a contract—

(1)for—

(A)commercial mobile service;

(B)telephone exchange service;

(C)internet access service;

(D)multichannel video programming service;

(E)a gym membership or fitness program; or

(F)home security services; and

(2)entered into by a servicemember before receiving the military orders referred to in subsection (a)(1).

(c)Retention of telephone number

In the case of a contract for commercial mobile service or telephone exchange service terminated under subsection (a) by a servicemember whose period of relocation is for a period of three years or less, the service provider under the contract shall, notwithstanding any other provision of law, allow the servicemember to keep the telephone number the servicemember has under the contract if the servicemember re-subscribes to the service during the 90-day period beginning on the last day of such period of relocation.

(d)Family plans

In the case of a contract for commercial mobile service entered into by any individual in which a servicemember is a designated beneficiary of the contract, the individual who entered into the contract may terminate the contract—

(1)with respect to the servicemember if the servicemember is eligible to terminate contracts pursuant to subsection (a); and

(2)with respect to all of the designated beneficiaries of such contract if all such beneficiaries accompany the servicemember during the servicemember’s period of relocation.

(e)Other obligations and liabilities

(1)In general

For any contract terminated under this section, the service provider under the contract may not impose an early termination charge, but any tax or any other obligation or liability of the servicemember that, in accordance with the terms of the contract, is due and unpaid or unperformed at the time of termination of the contract shall be paid or performed by the servicemember.

(2)Reinstatement of service

If the servicemember re-subscribes to the service provided under a covered contract during the 90-day period beginning on the last day of the servicemember’s period of relocation, the service provider may not impose a charge for reinstating service, other than the usual and customary charges for the installation or acquisition of customer equipment imposed on any other subscriber.

(3)Return of provider-owned equipment

If a servicemember terminates a contract under subsection (a), the servicemember shall return any provider-owned consumer premises equipment to the service provider not later than 10 days after the date on which service is disconnected.

(f)Return of advance payments

Not later than 60 days after the effective date of the termination of a contract under this section, the service provider under the contract shall refund to the servicemember any fee or other amount to the extent paid for a period extending until after such date, except for the remainder of the monthly or similar billing period in which the termination occurs.

(g)Definitions

For purposes of this section: (1)

(2)The terms “military orders” and “permanent change of station” have the meanings given such terms in section 3955 of this title.

(3)The term “multichannel video programming service” means a subscription video service offered by a multichannel video programming distributor, as that term is defined in section 522 of title 47, over a system the distributor owns or controls.

(4)The term “provider-owned consumer premises equipment” means any equipment that a provider of internet access service or multichannel video programming service rents or loans to a customer during the provision of that service, including gateways, routers, cable modems, voice-capable modems, CableCARDs, converters, digital adapters, remote controls, and any other equipment provided.

(5)The term “telephone exchange service” has the meaning given that term under section 153 of title 47.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 535a of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Amendments

2023—Pub. L. 117–333, § 17(a)(1), substituted “certain consumer” for “telephone, multichannel video programming, and internet access service” in section catchline. Subsec. (a). Pub. L. 117–333, § 17(a)(2)(A), inserted “or dependent of a servicemember” after “servicemember” in heading. Subsec. (a)(1). Pub. L. 117–333, § 17(a)(2)(B), substituted “after—” for “after the date the servicemember receives military orders to relocate for a period of not less than 90 days to a location that does not support the contract.” and added subpars. (A) and (B). Subsec. (a)(4)(D). Pub. L. 117–333, § 17(a)(2)(C), added subpar. (D). Subsec. (b). Pub. L. 117–333, § 17(a)(3), added subsec. (b) and struck out former subsec. (b). Prior to amendment, text read as follows: “A contract described in this subsection is a contract for commercial mobile service, telephone exchange service, internet access service, or multichannel video programming service entered into by the servicemember before receiving the military orders referred to in subsection (a)(1).” Subsec. (g)(2) to (5). Pub. L. 117–333, § 17(a)(4), added par. (2) and redesignated former pars. (2) to (4) as (3) to (5), respectively. 2021—Subsec. (a)(4). Pub. L. 116–285 added par. (4). 2018—Pub. L. 115–407, § 304(a)(1), inserted “, multichannel video programming, and internet access” after “telephone” in section catchline. Subsec. (b). Pub. L. 115–407, § 304(a)(2), substituted “commercial mobile service, telephone exchange service, internet access service, or multichannel video programming service” for “cellular telephone service or telephone exchange service”. Subsec. (c). Pub. L. 115–407, § 304(a)(3), inserted “for commercial mobile service or telephone exchange service” before “terminated”. Subsec. (d). Pub. L. 115–407, § 304(a)(4), substituted “commercial mobile service” for “cellular telephone service” in introductory provisions. Subsec. (e). Pub. L. 115–407, § 304(a)(5), designated first sentence of existing provisions as par. (1) and second sentence of existing provisions as par. (2), inserted headings, and added par. (3). Subsec. (g). Pub. L. 115–407, § 304(a)(6), added pars. (1) to (3), redesignated former par. (2) as (4), and struck out former par. (1) which read as follows: “The term ‘cellular telephone service’ means commercial mobile service, as that term is defined in section 332(d) of title 47.” 2010—Pub. L. 111–275 amended section generally, substituting provisions relating to termination of telephone service contracts for provisions relating to termination or suspension of contracts for cellular telephone service.

Statutory Notes and Related Subsidiaries

Effective Date

of 2023 Amendment; Retroactive Application Pub. L. 117–333, § 17(b), Jan. 5, 2023, 136 Stat. 6137, provided that: “The

Amendments

made by this section [amending this section] shall apply to stop movement orders issued on or after March 1, 2020.”

§3956 Termination of Certain Consumer Contracts

Summary

Title 50, §3956

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Citations & Metadata