FCC ends ISP requirement to list all fees individually

The Federal Communications Commission has voted to eliminate a rule that mandated Internet service providers (ISPs) to list all their "passthrough" fees individually on broadband price labels. This decision reverses a 2023 update designed to prevent bill shock and aid consumer price comparisons.

ISPs had argued that listing every fee was burdensome and complex. In response, FCC Chairman Brendan Carr proposed allowing ISPs to display these fees in an aggregate "up to" amount or via links to provider-managed webpages. This change makes it more difficult for consumers to ascertain the total monthly cost of their internet service.

The final order, approved with a 3-0 vote including Democrat Anna Gomez, represents a compromise. While Gomez expressed a preference for full itemization, the updated labels will now provide descriptions of fees remitted to state/local governments and third parties, with links for consumers to find more detailed information. The new rules also permit customer service representatives to discuss label information conversationally over the phone, rather than reading it verbatim.

Passthrough fees, such as E911 or pole attachment fees, are costs that ISPs pass on to consumers rather than incorporating them into the base advertised price. The FCC's previous leadership had implemented broadband labels following a directive from Congress to ensure transparency. However, Carr argued that the previous rules resulted in cluttered labels that increased compliance costs for providers.