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FCC ends ISP requirement to list all fees individually

Created at 22 Jul · 8:21 PM1 source↑ Market-relevant
IN SHORT

The Federal Communications Commission voted to eliminate a rule requiring Internet service providers to list all "passthrough" fees individually on broadband price labels. ISPs can now aggregate these fees, making it harder for consumers to compare prices and understand total costs.

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Key Numbers

3-0FCC vote count

Who's Involved

Federal Communications Commission (FCC)
U.S. agency that voted to change broadband label rules
Brendan Carr
FCC Chairman who proposed the change to aggregate fees
Anna Gomez
FCC Commissioner who supported the compromise
Jon Brodkin
Author and Senior IT Reporter for Ars Technica
USTelecom
Broadband lobby group that complained about fee listing burden
FCC ends ISP requirement to list all fees individually

↳ Why This Matters

This FCC decision makes it harder for consumers to understand the true cost of internet service, potentially leading to bill shock and hindering their ability to compare plans accurately. The move benefits ISPs by reducing their compliance burden and allowing them to continue advertising lower initial prices.

Key facts

  • The FCC voted 3-0 to eliminate a rule requiring ISPs to itemize all discretionary monthly passthrough fees on broadband price labels.
  • ISPs will now be able to display passthrough fees in an aggregate "up to" amount or via links to provider-managed webpages.
  • The updated labels will include subcategories for fees remitted to state/local governments and third parties.
  • The new rules allow customer service representatives to discuss label information conversationally over the phone.
  • Passthrough fees are costs ISPs pass to consumers, such as E911 or pole attachment fees, rather than including them in the base price.

    • 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.

    Frequently asked questions

    Passthrough fees are costs that Internet service providers pass directly to consumers, such as state and local right-of-way fees or pole attachment fees, rather than including them in the base monthly price.

    ISPs complained about the burden of listing all fees individually, and FCC Chairman Brendan Carr proposed a change to simplify the labels and reduce compliance costs for providers.

    The labels will still include necessary information about pricing, introductory rates, broadband speeds, and data allowances. They will also remain accessible and available in the languages providers use to market their services.

    What Happens Next

    01The order will take effect 30 days after publication in the Federal Register.

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    Cadence

    How It Developed

    The FCC voted to eliminate a rule requiring ISPs to list all passthrough fees individually.
    ISPs had complained about the burden of listing all fees on broadband price labels.
    FCC Chairman Brendan Carr proposed allowing ISPs to display fees in an aggregate "up to" amount.
    The final order allows ISPs to provide links to fee descriptions instead of full itemization.
    The updated labels will include subcategories for state/local and third-party fees with links to provider webpages.
    The new rules allow ISPs to discuss label information conversationally over the phone.
    The changes aim to simplify labels and reduce compliance costs for providers.

    Sources

    T1
    ISPs’ long nightmare of having to list all the fees they charge is finally overvar abtest_2164381 = new ABTest(2164381, 'impression');Ars Technica

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