To the Members of the United States Congress, the Executive Branch, and All Federal Agencies Responsible for Consumer Protection and Trade Regulation:

We, the undersigned American citizens and consumers, urge you to take immediate action to ban the use of trade-in programs or transactions as a means of restricting consumer choice and financial freedom in all commercial transactions. Many companies, particularly wireless carriers, structure their trade-in programs in ways that unfairly financially penalize consumers who do not adhere to rigid conditions and unwittingly lock them into long-term service agreements. These practices strip consumers of their ability to make independent financial decisions, create undue financial burdens for consumers, and potentially cheat consumers out of the fair-market value of products being traded in. To protect American consumers from these reprehensible practices, we call on Congress and on all relevant federal agencies to enact, implement, and enforce legislation that:

1. Requires that all commercial trade-in transactions pay the full, fair-market value of a product trade-in upfront. Whether applied as a credit toward a new product or issued as a prepaid debit card, a bank check, or another universally accepted form of payment, the fair-market trade-in value cannot be issued in a way that conditions payment of the value owed on continued service or rigid adherence to a financing plan.

This ensures that consumers receive the full, fair-market value of their trade-ins at the time the transaction occurs, rather than being subjected to coercive, long-term agreements just to claim what is rightfully theirs. By mandating upfront payment of trade-in value, businesses are held to fair competitive standards, and consumers maintain financial independence and the freedom to choose the company that best meets their needs.

2. Mandates that fair-market trade-in values cannot be revoked, reduced, or withheld under any circumstances after a trade-in transaction is completed. This ensures that consumers receive the full, agreed-upon trade-in value regardless of whether they pay off the remaining balance of a new product received in the trade-in transaction early, end their service agreement with the company before the completion of any promotional credit period, switch to a different service plan or product offering from the same company, or choose to do business with a different company altogether.

This provision safeguards consumer rights and prevents companies from coercively using trade-in values as a tool to impose financial penalties or forced retention, ensuring a fair and competitive marketplace.

3. Require that consumers are provided with full disclosure of trade-in terms and related consumer rights before any trade-in transaction is completed. This ensures that consumers understand that:

• Fair-market trade-in values are separate from any additional promotional incentives or discounts.
• That any promotional values offered are optional and therefore not tied to the fair-market trade-in value.
• That any conditions attached to additional promotional values are made clear.

This requirement ensures that consumers can make fully informed financial decisions and prevents companies from misleading consumers into agreements that ultimately restrict their financial freedom.

4. Provides immediate relief for consumers currently trapped in trade-in agreements that violate these protections. Consumers who entered into a trade-in agreement under conditions that would be deemed unlawful under this legislation must be given an immediate exit from the agreement without penalty or loss of trade-in value. Such relief includes, but is not limited to:

• Full payment of any revoked or withheld fair-market trade-in value.
• Removal of any service requirements tied to receiving the trade-in value.
• The ability to pay off a financed product early without forfeiting any portion of the fair-market trade-in value.

This ensures that consumers already affected by these practices are not forced to continue enduring financial penalties, or burdens, or restrictions that would be illegal under this law. Immediate relief that is retroactively applied guarantees that the legislation has a real and lasting impact, not only on the future, but also for those already harmed by these underhanded trade-in practices.

This legislation must strictly apply to all commercial trade-in programs and transactions, ensuring that companies cannot exploit trade-ins as a means of coercion or forced retention. Trade-ins should be a fair and transparent process, allowing consumers to upgrade or exchange products without being unwittingly entrapped into long-term commitments. Therefore, we the undersigned American consumers, demand immediate action. We will no longer accept trade-in programs that exploit consumers, strip them of financial freedom, and entrap them in coercive agreements. We call upon Congress and all relevant federal agencies to act without delay and put an end to these abusive practices once and for all.

No more trade-in traps. The time for action is now.

Sincerely signed,

[The Undersigned American Consumers]