Key facts
- The FCC will vote to eliminate a rule requiring Internet service providers (ISPs) to list all "passthrough" fees on broadband price labels.
- ISPs will be permitted to aggregate these fees into a single "up to" amount.
- The FCC is also relaxing requirements for price label accessibility, allowing hyperlinks and conversational summaries over the phone.
- The requirement for ISPs to provide price information in machine-readable spreadsheets will be removed.
- The changes aim to simplify compliance for ISPs and are seen as a win for the broadband lobby.
The Federal Communications Commission is set to vote on eliminating a decade-old rule that requires Internet service providers (ISPs) to itemize all "passthrough" fees on broadband price labels. This move, seen as a victory for the broadband industry, would allow ISPs to consolidate these fees into a single "up to" amount, potentially obscuring the true cost of internet service for consumers.
Under the current Biden-era rules, ISPs must list all discretionary monthly fees passed through to consumers. However, ISPs, including Comcast, have argued that itemizing these fees, which can vary by location and include charges from third parties like utility pole owners, is overly complex. The draft order, influenced by the Trump-era FCC's approach to deregulation, would permit providers to display these aggregate fees as a maximum or "up to" amount.
Beyond fee itemization, the FCC's proposed changes also include making price information less accessible. ISPs will be allowed to use hyperlinks to direct consumers to price labels rather than displaying them prominently on ordering pages and account portals. The requirement for phone sales representatives to provide verbatim price information will be relaxed, allowing for conversational summaries. Furthermore, the mandate for ISPs to provide price-label data in machine-readable spreadsheets will be eliminated, which public interest groups argue will hinder the development of comparison shopping tools.
Public interest organizations, including Public Knowledge and the National Consumer Law Center, have strongly urged the FCC to reject these changes. They contend that the move will exacerbate the problem of "junk fees" and hidden charges, potentially widening the digital divide and allowing ISPs to evade accountability. They likened the change to hospitals sending bills without clear explanations of charges. The groups also emphasized the importance of machine-readable data for market research and telephone disclosures as safeguards against scams.
Another proposed change would remove the requirement for ISPs to archive all service plan labels for at least two years after a plan is discontinued. The Utility Reform Network highlighted that these archived labels are crucial for tracking price and service changes over time and for affordability research.