FCC Proposal Sets Stage for ISPs to Bypass Consumers with Hidden Fees
The Republican-led Federal Communications Commission (FCC) has approved a proposal that makes it easier for internet service providers (ISPs) to charge hidden fees without providing clear information to consumers. The proposed rule change, which was passed by all Republican commissioners and one Democrat on October 28, would significantly scale back the Broadband Facts labels β also known as "nutrition labels" β that ISPs have been required to publish since April.
These labels provide a breakdown of every little thing that goes into a bill for a service plan, including many "hidden fees" that ISPs don't include in advertised plan prices. The labels were initially proposed in 2016 and implemented by the Biden administration in 2024, with the goal of increasing transparency and consumer understanding.
However, under the new proposal, ISPs will no longer be required to read these labels over the phone to customers, make them available in account portals, or provide a complete accounting of fees. The FCC claims that these transparency requirements are "unduly burdensome" but notes that only 15% of customers actually use this information.
Critics argue that this change is a "political two-step," where ISPs first introduce labels and then claim they're unnecessary and remove them to confuse consumers. Anna Gomez, the lone Democrat on the commission, described the proposal as "one of the most anti-consumer items I have seen."
Despite claims from FCC Commissioner Brendan Carr that consumers don't benefit from these labels, a 2024 study found an 85% satisfaction rate among broadband customers who received detailed information about their bills. In contrast, Americans pay significantly more for internet service compared to many other countries, with rates twice as high as those in Europe and most of Asia.
While the proposal has not yet become final, experts warn that this change could further entrench opaque billing practices and harm consumers.
The Republican-led Federal Communications Commission (FCC) has approved a proposal that makes it easier for internet service providers (ISPs) to charge hidden fees without providing clear information to consumers. The proposed rule change, which was passed by all Republican commissioners and one Democrat on October 28, would significantly scale back the Broadband Facts labels β also known as "nutrition labels" β that ISPs have been required to publish since April.
These labels provide a breakdown of every little thing that goes into a bill for a service plan, including many "hidden fees" that ISPs don't include in advertised plan prices. The labels were initially proposed in 2016 and implemented by the Biden administration in 2024, with the goal of increasing transparency and consumer understanding.
However, under the new proposal, ISPs will no longer be required to read these labels over the phone to customers, make them available in account portals, or provide a complete accounting of fees. The FCC claims that these transparency requirements are "unduly burdensome" but notes that only 15% of customers actually use this information.
Critics argue that this change is a "political two-step," where ISPs first introduce labels and then claim they're unnecessary and remove them to confuse consumers. Anna Gomez, the lone Democrat on the commission, described the proposal as "one of the most anti-consumer items I have seen."
Despite claims from FCC Commissioner Brendan Carr that consumers don't benefit from these labels, a 2024 study found an 85% satisfaction rate among broadband customers who received detailed information about their bills. In contrast, Americans pay significantly more for internet service compared to many other countries, with rates twice as high as those in Europe and most of Asia.
While the proposal has not yet become final, experts warn that this change could further entrench opaque billing practices and harm consumers.