These labels must be displayed wherever home internet and mobile broadband plans are available, including in stores and online.
Jon Donenberg, deputy director of the White House National Economic Council, proposed the labels on a call with reporters as the Biden administration cracks down on unfair pricing across the economy as consumers grapple with rising costs. part of the effort. “This will ensure you have a clear, straightforward explanation of your internet charges,” he said.
In recent weeks, the government also announced it would cap late fees on credit cards and established a “strike team” to investigate pricing practices for prescription drugs, groceries, housing and financial services.
On the new tab, ISPs must list the monthly fee, whether the price is a discounted promotional fee, and the price after the promotional period ends. Additional charges such as lease fees, activation fees, early termination fees and government taxes for modems and other equipment must also be itemized.
The companies must also provide typical download and upload speeds, the amount of data included in the monthly price, and charges for additional data usage.
If a provider fails to display a label or publishes inaccurate information, consumers can file a complaint with the FCC at consumercomplaints.fcc.gov. Labeling requirements will come into effect on Wednesday for providers with more than 100,000 subscribers, while smaller providers have until October to comply.
The FCC has the authority to fine companies under Section 503 of the Communications Act and regularly invokes this authority against major internet service providers. In 2015, AT&T was fined $100 million for improperly slowing down customers’ internet speeds after using a certain amount of data, even though the plan was advertised as “unlimited.”
But consumer complaints about the industry’s opaque advertising practices remain widespread. A 2022 study by Consumer Reports analyzed more than 22,000 broadband bills and concluded that many of them were “bundled” TV, phone and internet packages, making it impossible for consumers to discern the cost of internet service alone . The study also found that download speeds were consistently lower than advertised and that additional fees were often confusing.
Alejandro Roark, director of the FCC’s Bureau of Consumer and Governmental Affairs, told reporters on Tuesday that the labels are based on earlier voluntary labels that the FCC explored in 2016.
The introduction of mandatory labeling has been praised by consumer advocates.
“Broadband labeling is a critical step toward creating a fairer market,” Justin Bruckman, director of technology policy at Consumer Reports, said in a statement. “Internet providers have long concealed the true cost of the services they provide.”
Comcast’s business broadband website says it is providing labels in compliance with new FCC requirements, but the monthly prices on the labels may differ from those advertised.
“The prices shown at the top of the Broadband Facts label reflect our regular monthly service fees and do not include any discounts or promotions. For example, the prices on the label do not include limited-time offers or discounts for signing up for autopay and paperless billing,” Conca ster website said.