FCC’s new labels for Internet shoppers will look familiar
New consumer broadband labels, unveiled by the Federal Communications Commission on Monday, aim to educate buyers about the Internet service they are shopping for.
Just as food labels tell you what you are about to eat, new consumer broadband labels let you know how big of a broadband bill you might be biting off before you sign a contract.
The voluntary labels are “a simplified approach to the core information that consumers need to make an informed purchase decision,” FCC Chairman Tom Wheeler said during an event unveiling the labels Monday.
The labels, designed for home and mobile broadband service, look like “a nutrition label,” he said.
The FCC’s Open Internet or Net neutrality rules, passed last year, require Internet service providers (ISPs) to disclose infor- mation about their services in an understandable fashion. The labels, which the FCC worked with the Consumer Financial Protection Bureau on creating, are not mandatory. But they’re recommended by the agency to bring ISPs into compliance.
Examples of the labels provided by the FCC show monthly charges and data allotments, along with costs for exceeding limits.
The average monthly broadband bill is $60-$70, the FCC said. But taxes and fees can add as much as 40% to advertised broadband services, the agency says.
“Hidden fees have no place to hide,” Wheeler said. “The surprise of when you open your first bill and you say, ‘That wasn’t what I was expecting,’ won’t hap- pen anymore because everything is laid out.”
In creating the labels, the CFPB addressed Internet service as it had previously designed disclosures for mortgages and student loans. “Signing up for (Internet) service represents a significant financial commitment,” said CFPB Director Richard Cordray.
The National Cable & Telecommunications Association said in a statement, “In today’s competitive marketplace, cable Internet providers are committed to providing consumers with accessible and relevant information about broadband services.
“We appreciate this contribution by the commission to offer consumers that same information in a format they are familiar with.”