Internet providers must now be more transparent about fees, pricing: FCC
NEW YORK — Much like nutritional labels on food products, “broadband labels” for internet packages will soon tell you just what is going into the pricing of your service, thanks to new rules adopted by the Federal Communications Commission this week.
“If you’ve ever shopped for home or mobile internet, you can understand how hard it can be to understand what you’re actually paying for,” Jon Donenberg, deputy director of the White House National Economic Council, said on a call with reporters. “The broadband nutrition label is a tool that can help consumers make sure they have a clear, straightforward explanation of home and mobile services before signing up for anything.”
Following the design of FDA food labels, the broadband labels will provide easy-tounderstand, accurate information about the cost and performance of high-speed internet service to help consumers avoid junk fees, price hikes and other unexpected costs.
Internet service providers selling home access or mobile broadband plans are, as of Wednesday, now required to have a label for each plan. The labels will be mandated to appear at any point of sale, online and in stores, and they will be required to disclose all pricing information — including introductory rates, data allowances and speeds. The labels will also include links to information about network management practices and privacy policies.
What’s behind the new labeling?
Hidden fees and unexpected rate hikes have dogged consumers shopping for internet service for years, and the Biden administration has been cracking down on “junk fees” across industries — including banking, hotel and airline pricing, and utility and phone services — for the past several years.
On a call Tuesday, a spokesperson for the FCC clarified that the labels “cannot be buried in multiple clicks” or hidden in a way that a consumer might miss.
“Fees can make it hard to understand the true cost of an internet plan,” Donenberg said, adding that the agency is “committed to rooting out surprise junk fees that some companies pile on to your bills.”
What information will each label contain?
♦ Monthly price and contract length
♦ Whether that price will change after a certain period and what it will change to
♦ Complete list of monthly and one-time fees and early termination fee
♦ Whether the company participates in the Affordable Connectivity Program and link to check if one qualifies
♦ “Typical” download and upload speeds and latency
♦ Data cap and price beyond that cap
♦ Links to network management (e.g., zero rating and content blocking) and privacy policies
What if I don’t understand something?
A glossary on the FCC’s website is available to help consumers better understand the information displayed on the label.
What if a provider doesn’t display it?
If a provider does not display their labels or posts inaccurate information about its fees or service plans, consumers can file a complaint with the FCC Consumer Complaint Center.
When do these rules take effect?
While many providers will begin displaying their labels in April, some firms with fewer than 100,000 subscribers will have until Oct. 10 to comply.