The FCC has denied an effort from several ISPs to dissolve a requirement that’ll force them to list all the fees subscribers have to pay for their broadband services.
The requirement is part of the FCC’s new broadband labels, which are designed to make it easy for consumers to understand the pricing and performance of a broadband plan, much like today’s nutrition fact labels. For months now, internet service providers have been complaining that listing all the recurring monthly fees is too burdensome because the costs can vary by area, forcing the creation of potentially thousands of different labels.
As a result, the ISPs and their lobbying groups urged the FCC to loosen the requirements. But this week, the FCC rejected the petitions, saying it’s necessary to preserve consumer access to accurate information about the costs and performance of broadband services on the market.
“Every consumer needs transparent information when making decisions about what internet service offering makes the most sense for their family or household. No one wants to be hit with charges they didn’t ask for or they did not expect,” said FCC Chairwoman Jessica Rosenworcel in a statement.
The order from the FCC adds that the ISPs were hoping to simplify the labeling requirement by allowing them to “display an ‘up to’ price for certain fees they choose to pass through to consumers.” But the Commission rejected the request to maintain the broadband labels’ simplicity, and prevent the ISPs from loading them with “potentially complex and lengthy details about data allowances on the label.”
That said, the FCC did make some small changes and clarifications to the broadband labeling process. This includes “modifying provider record-keeping requirements when directing consumers to a label on an alternative sales channel and confirming that providers may state ‘taxes included’ when their price already incorporates taxes,” the regulator said.
The FCC adds that the broadband label rules will go into effect after a legally required review from the US Office of Management and Budget. “After this Paperwork Reduction Act analysis is complete, the majority of providers will have to display the label within six months of approval; providers with 100,000 or fewer subscriber lines face a deadline of twelve months,” the Commission added.