What does a high-speed internet plan have in common with a box of Froot Loops?
Starting Wednesday, the Federal Communications Commission, or FCC, is requiring Internet service providers to clearly display pricing and service details on a “broadband label” directly modeled after nutritional data on food products.
“We want to make basic information about broadband Internet services relatable and easy to understand,” Alejandro Roark, head of the FCC’s consumer bureau, said on a call with reporters Tuesday.
The end goal is twofold: The first is to make it easier for everyday Americans to comparison shop for both mobile and wired Internet plans. And two, force companies to “compete by offering better conditions, not just more confusing ones,” said Jon Donenberg, deputy director of the White House National Economic Council.
Before this rule, Internet providers often charged a variety of fees – such as those for installation, early cancellation, modems and additional data usage – all on top of the monthly cost of service, which in turn may increase over time.
While the rule doesn’t explicitly ban these additional fees, it mandates them front and center at the point of sale, whether online or in person. Tariffs, which were usually hidden in the fine print, “can no longer be buried,” Roark said.
Broadband labels: what should be included?
According to the FCC, these broadband labels must be clear and follow a standardized template for each plan offered by a provider. Labels must include “broadband prices, upfront fees, data availability and broadband speeds,” as well as “links to information about network management practices and privacy policies.”
Additionally, the label should include the monthly price after the introductory fees expire, as well as a detailed list of costs, such as modem rentals, Wi-Fi extenders, termination fees, and more.
Large Internet service providers with more than 100,000 subscribers are expected to begin displaying consumer broadband labels on Wednesday. (This includes companies like AT&T, Verizon, and Xfinity.) Smaller providers with fewer than 100,000 subscribers have until October 10 to do so.
If a provider does not display information clearly and correctly, consumers can file complaints directly with the FCC. The agency will investigate and possibly apply sanctions to Internet companies depending on the severity of violations.
Millions of people could soon purchase Internet plans
The FCC’s broadband label requirement is part of a broader initiative by the Biden administration to expand access to high-speed Internet. The introduction of the price transparency measure comes just before millions of Americans are potentially forced to find new internet plans – or remain without a connection.
In 2021, the bipartisan infrastructure deal funneled more than $70 billion to build broadband infrastructure across the country and create federal programs to help Americans afford internet service, including an order for the FCC to implement the requirements of the broadband label. Part of that funding went to create the Affordable Connectivity Program, a federal subsidy that provides up to $30 a month (or $75 to homes on tribal lands) to assist people with internet bills. More than 23 million Americans have signed up for the program, but the money is quickly running out.
By the end of April, the FCC says the entire Internet subsidy will end. (Some people may get a partial subsidy in May.) Indeed, when the subsidy expires, Internet bills for more than 20 million Americans will soar, prompting many to purchase affordable plans and others to lose Internet access.
Earlier this year, a bipartisan group of lawmakers in both houses of Congress introduced a bill to maintain funding for the ACP, but it has yet to come to a vote.
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