FCC to Scrap ISP Fee Disclosure Rule Amid Rising Costs
▼ Summary
– FCC Chair Brendan Carr proposes eliminating a rule requiring ISPs to itemize all discretionary fees on broadband price labels, following requests from industry lobby groups.
– The rule, implemented in April 2024, mandates that ISPs list recurring monthly fees they impose voluntarily, not those required by government.
– ISPs could comply by either listing fees or removing them and raising base prices, but the latter conflicts with advertising low prices and charging more later.
– A vote is scheduled for October 28 on a proposal to remove requirements, including itemizing location-varying state and local passthrough fees, with public comment sought first.
– This proposal is part of Carr’s “Delete, Delete, Delete” initiative to reduce regulations, supported by broadband industry groups who argue detailed fee listings overwhelm label information.
The Federal Communications Commission is moving to eliminate a regulation that mandates internet service providers clearly itemize all recurring monthly fees on consumer broadband labels. FCC Chairman Brendan Carr has scheduled a vote for October 28 on a proposal that would scrap the requirement for ISPs to list individual charges like state and local passthrough fees, arguing that the detailed breakdowns can overwhelm the other information presented to customers.
This rule, which only took effect in April 2024, was originally designed to prevent the common industry practice of advertising a low base price only to surprise customers with numerous additional fees on their final bill. The regulation specifically targeted fees that providers impose at their own discretion, meaning charges not required by a government entity. Providers were given a choice: they could either list each fee separately or eliminate the fees entirely and adjust their overall monthly price accordingly.
However, raising the advertised price to include these costs runs counter to the marketing strategy of attracting customers with a deceptively low initial offer. The broadband price label rules were a consumer protection measure aimed at creating pricing transparency and halting misleading advertisements.
Chairman Carr’s new draft proposal argues that the current requirement to itemize certain fees should be removed. The proposal seeks public comment on whether providers should instead be allowed to display a single, aggregate total for these various charges. Examples of fees that would no longer need individual listing include state and local right-of-way fees, pole rental fees paid to utility companies, and other similar charges where the ISP does not directly control the rates.
This initiative is part of a broader deregulatory agenda championed by Carr, informally referred to as the “Delete, Delete, Delete” proceeding. Major cable and telecom lobby groups, including the NCTA, had petitioned the FCC to remove the itemization rule, claiming the extensive lists of fees made the labels confusing for consumers. The upcoming vote will determine whether the commission moves forward with this plan to simplify broadband labels by reducing the level of detailed cost information provided.
(Source: Ars Technica)
