Starting Wednesday, Internet service providers (ISPs) will try to make it easier for consumers to understand the contents of their monthly Internet bills. The Federal Communications Commission (FCC) now requires providers to provide notices resembling nutrition labels that detail what they receive and how much different parts of their Internet service cost.
However, the contents of the labels will not be calories or grams of sugar and fat. Instead, broadband consumers will be able to see information such as monthly price, discounts and plans, internet speed range for plans, amount of data included each month, network management policies and privacy policy, customer support contacts, and any additional fees and terms. , including early termination and late termination fees.
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The new labels will allow consumers to compare plans more quickly, based on price and internet speeds. For example, someone looking for a high-speed connection for online gaming would find the typical download, upload, and latency speeds useful. Other people more focused on price would look at the top of the label to see the monthly cost and additional fees for a particular service plan.
Larger ISPs will be required to display these labels to consumers before purchasing a service plan, whether online or in-store. The information is required for any standalone home or landline Internet service, as well as mobile broadband plans, according to an FCC fact sheet.
Price breakdowns on the label can be used for comparison purposes. In a video message about the announcement released Wednesday morning, President Biden called the move an effort to eliminate so-called unwanted fees.
“My friends, my administration is taking a major step toward eliminating unwanted fees on Internet bills,” Mr. Biden said in a video message on his POTUS social media accounts. “The FCC requires Internet service providers to tell you exactly what you pay for, exactly what you get, when you buy your Internet package, all on a simple label,” President Biden said.
The new label comes from an October 2023 FCC rule that requires Internet service providers (ISPs) with more than 100,000 subscribers to display the label at the time of purchase. ISPs with 100,000 or fewer customers have until October 10 to display the customer label.
By then, providers will also be required to make consumer labels readable, which will allow third parties to better compile data on Internet plans so consumers can compare plans.
Some Internet service providers have already exceeded the deadline set by the FCC and are already using these labels.
“To support consumer choice, competition and innovation, we want to make it easy for you to quickly understand what’s included in all of our broadband plans,” Verizon now says on its website.
Google Fiber, an Alphabet subsidiary that offers high-speed Internet plans in select markets, was the first to unveil its consumer label.
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