Congress mandates automatic refunds for service outages—with a loophole
S. 4557 — Outage Refund Protection Act · Filed by Ben Luján (D-NM) · Introduced May 18, 2026 · Referred to committee
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What it does
This bill requires telephone, cable, satellite, and internet providers to automatically credit customers' bills when service outages last 4+ hours, at a rate of 1/30 of the monthly bill per day of outage. Providers must refund excess credits within 30 days if a customer terminates service, though they can avoid refunds if the disbursement cost exceeds the refund amount. The bill also mandates FCC and FTC rules on customer service improvements (disability access, call recordings, no fees for live representatives) and requires broadband providers to report outages to the FCC.
Why we flagged it
The bill's operative mechanism is a mandatory automatic refund system for service outages, paired with FCC/FTC rulemaking on customer service standards. This is straightforward consumer protection, not a hidden carve-out or subsidy.
What the text implies
- The 4-hour threshold may incentivize providers to resolve outages quickly but could also create disputes over outage duration measurement and reporting.
- The disbursement-cost exception allows providers to avoid refunds on small credits, potentially leaving customers with sub-$5 outage claims uncompensated.
The full analysis lists 5 implications of this text.
Who stands to gain
consumers (direct refunds and service credits); disability advocacy organizations (accessibility mandates may increase compliance costs but improve