Internet providers must now be more transparent about fees, pricing, FCC says
NEW YORK — Like nutrition labels on food products, “broadband labels” for Internet packages will soon tell you exactly what’s included in the pricing of your service, thanks to new rules passed this week by the Federal Communications Commission.
“If you’ve ever shopped for home or mobile internet, you understand how difficult it can be to understand what you’re actually paying for,” said Jon Donenberg, deputy director of the White House National Economic Council, in a conversation with reporters. “The Broadband Power Label is a tool to help consumers ensure they get a clear, straightforward explanation of home and mobile services before signing up for anything.”
Following the design of FDA food labels, these broadband labels will provide easy-to-understand, accurate information about the cost and performance of high-speed Internet services to help consumers avoid junk fees, price increases and other unexpected costs.
Internet providers selling home access or mobile broadband plans will be required to have a label for each plan from April 10.
The labels will be required to appear at every point of sale, including online and in stores, and they will be required to disclose all pricing information – including introductory rates, data limits and speeds. The labels will also contain links to information about network management practices and privacy policies.
Here’s what you need to know.
Hidden fees and unexpected rate increases have dogged consumers for years when purchasing internet services, and the Biden administration has cracked down on “junk fees” (opaque and misleading fee structures) across several industries – including banking, hotel and airline pricing, and utilities. telephone services – in recent years.
During a call Tuesday, an FCC spokesperson clarified that the labels “cannot be buried in multiple clicks” or hidden in a way that a consumer could miss.
“Fees can make it difficult to understand the true cost of an Internet subscription,” Donenberg says, adding that the agency is “committed to rooting out unexpected junk fees that some companies stack on your bills.”
1. Monthly price and contract duration
2. Whether that price will change after a certain period and what it will change in
3. Complete list of monthly, one-time and early termination fees
4. Whether the company participates in the Affordable Connectivity Program and a link to check eligibility
5. “Typical” download and upload speeds and latency
6. Data limit and price above
7. Links to network management (e.g. zero-rating and content blocking) and privacy policy
A glossary is available to help consumers better understand the information on the label.
If a provider fails to display its labels or posts inaccurate information about its rates or service plans, consumers can file a complaint with the FCC Consumer Complaint Center.
While many carriers will begin displaying their labels in April, some companies with fewer than 100,000 subscribers have until October 10, 2024 to comply with FCC rules.
“The Associated Press receives support from the Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.”