Apparatus and methods for automatically (i.e., without requiring manual user adjustment) reducing gain in one or both acoustic feedback paths of a cordless telephone when the handset and its base unit are operating in close proximity to one another, preventing uncontrolled feedback and audible howling even before it begins. A proximity detection module determines a distance between the handset and its base unit using an appropriate technique, e.g., using RSSI, round trip delay times, and/or GPS measurements. If the distance indicates that the handset is within close proximity to the base unit, appropriate attenuation of the microphone gain and/or speaker volume of the base unit and/or the handset will be implemented. One or more fixed levels of attenuation may be implemented based on a corresponding one or more measured close proximity distances between the handset and its base unit. Thus, the attenuation may result in a muting, a fixed amount of attenuation (e.g., 6 decibels (dB), 12 dB, or other appropriate fixed amount), or may be a variable amount dependent upon a relationship to the distance between the handset and the base unit.