The Federal Communications Commission has adopted new rules that will require internet service providers to provide “broadband labels” for their home access or mobile broadband plans. These labels will be similar to nutritional labels on food products and will include information about pricing and performance to help consumers make informed decisions when choosing an internet service provider. The labels will be required to disclose pricing information, data allowances, speeds, and links to network management practices and privacy policies.
The new labeling requirements aim to address hidden fees and unexpected rate hikes that have long plagued consumers when shopping for internet service. The Biden administration has been cracking down on “junk fees” across various industries, and the FCC is committed to eliminating surprise fees that some companies add to consumers’ bills. The labels cannot be buried or hidden in a way that consumers might miss, ensuring transparency in pricing and fees.
Each broadband label will contain important information such as monthly price, contract length, potential price changes, list of fees, early termination fee, participation in the Affordable Connectivity Program, typical speeds, data cap, and links to network management and privacy policies. A glossary will be available to help consumers understand the information on the labels. Consumers can file complaints with the FCC if providers do not display their labels or provide inaccurate information about fees or service plans.
Providers selling home access or mobile broadband plans will be required to have labels for each plan starting April 10. The labels must be visible at any point of sale, whether online or in stores. While most providers will comply with the rules by April, smaller firms with less than 100,000 subscribers will have until October 10, 2024, to comply. This initiative aims to empower consumers by providing clear and accurate information about the cost and performance of high-speed internet services, helping them avoid hidden fees, price hikes, and other unexpected costs.
Overall, the new broadband labeling requirements represent a step towards greater transparency in the internet service provider industry. By providing consumers with easy-to-understand information about pricing and performance, these labels will help individuals make more informed decisions when choosing an internet plan. The FCC’s commitment to rooting out surprise fees and ensuring that providers comply with the labeling requirements will benefit consumers by safeguarding against opaque and misleading pricing practices.
