Compare Before You Commit! FCC Mandates Clearer Internet Pricing to Save You Money

• The Federal Communications Commission (FCC) has approved new regulations mandating "broadband labels" for internet packages, akin to FDA food labels, providing consumers with clear, precise information about pricing and functionality to avoid unforeseen expenses.

• Starting April 10, internet service providers must display these labels for mobile broadband or home connection plans at all points of sale, online and in-store, ensuring full disclosure of pricing details including introductory rates, data allotments, and speeds, along with links to privacy rules and network management procedures.
• This initiative aligns with the Biden administration's efforts to combat "junk fees" across various industries, aiming to address hidden charges and unanticipated rate hikes that have long plagued consumers shopping for internet services. The FCC emphasizes the importance of transparent information for consumers when selecting internet service providers.

Thanks to new regulations the Federal Communications Commission approved this week, "broadband labels" for internet packages will soon reveal exactly what goes into the price of your subscription.

These broadband labels, which will be designed in accordance with FDA food labels, would give consumers clear, precise information about the pricing and functionality of high-speed internet access, therefore assisting them in avoiding unforeseen expenses like trash fees and price increases.

Starting on April 10, internet service providers offering plans for mobile broadband or home connection must have a label for each package.

Any point of sale, both online and in-store, must have the labels displayed, and they must provide full disclosure of all price details, such as introductory rates, data allotments, and speeds. Links to details regarding privacy rules and network management procedures will also be included on the labels.

What You Should Know Is As Follows

For the past few years, the Biden administration has been taking action against "junk fees," or opaque and misleading fee structures, in various industries, including banking, hotel and airline pricing, utility, and phone services. Hidden fees and unanticipated rate hikes have plagued consumers who have been shopping for internet service for years.

The FCC representative made this clarification during a teleconference on Tuesday, saying that the labels cannot be buried in multiple clicks or concealed in a way that a customer would overlook.

Ensuring Transparency in Internet Service Provider Selection

Donenberg highlighted the challenges posed by fees in accurately assessing the actual cost of internet plans, affirming the agency's commitment to addressing hidden charges that some companies add to bills. The Federal Communications Commission (FCC) emphasizes the importance of consumers having access to transparent information when selecting internet service providers. Key elements consumers should consider include the following:

• Clear disclosure of the monthly price and contract length.
• Transparency on whether the price will change over time and the new rate after any introductory period.
• Disclosure of all monthly and one-time fees, including early termination fees.
• Information on whether the company participates in the Affordable Connectivity Program, with a link provided for eligibility verification.
• Specifications on "typical" download and upload speeds, as well as latency.
• Clarity on data caps and associated charges beyond the cap.
• Access to network management policies such as zero rating and content blocking, as well as privacy policies, through provided links.