New FCC rules require internet providers to be more transparent about fees, pricing – NBC Chicago

Just like nutrition labels on food products, “broadband labels” for Internet plans will soon tell you exactly what goes into the price of your service, thanks to new rules adopted this week by the Federal Communications Commission.

“If you’ve ever purchased home or mobile Internet, you understand how difficult it can be to understand what you’re actually paying for,” said Jon Donenberg, deputy director of the White House National Economic Council, during a call with journalists. “Broadband nutrition labeling is a tool that can help consumers ensure they have a clear and straightforward explanation of home and mobile services before signing up for anything.”

Following the FDA’s food label design, these broadband labels will provide accurate, easy-to-understand information about the cost and performance of broadband Internet service to help consumers avoid unnecessary fees, price gouging and other costs. unexpected costs.

Internet service providers selling home access or mobile broadband plans will be required to have a label for each plan starting April 10.

The labels will be required to appear at any point of sale, including online and in stores, and they will be required to disclose full pricing information, including introductory prices, data allowances and speeds. Labels will also include links to information about network management practices and privacy policies.

Here’s what you need to know.

What is behind the new labeling?

Hidden fees and unexpected rate hikes have driven consumers to buy internet service for years, and the Biden administration has cracked down on “junk fees” (opaque and misleading pricing structures) across all sectors – including pricing banks, hotels and airlines, as well as utilities and telephone services – for several years.

In a call Tuesday, an FCC spokesperson clarified that the labels “cannot be buried with multiple clicks” or hidden in a way that a consumer might miss.

“Fees can make it difficult to understand the true cost of an internet plan,” Donenberg said, adding that the agency is “committed to eliminating surprise unwanted fees that some companies add to your bills.”

What information will each label contain?

• Monthly price and contract duration
• Whether this price will change after a certain period and how it will change
• Full list of monthly and one-time fees, plus early termination fees
• If the company participates in the Affordable Connectivity Program and link to check if one is eligible
• “Typical” download and upload speeds and latency
• Data cap and prices beyond this cap
• Links to network management (e.g. zero rating and content blocking) and privacy policies

What should I do if I don’t understand something in the labels?

A glossary is available to help consumers better understand the information displayed on the label.

What happens if a supplier does not display the label?

If a provider fails to display its labels or posts inaccurate information about its fees or service plans, consumers can file a complaint with the FCC’s Consumer Complaint Center.

When do these rules come into effect?

While many providers will begin displaying their labels in April, some companies with fewer than 100,000 subscribers will have until October 10, 2024 to comply with FCC rules.