FCC Adopts New Rules for Broadband Labels to Increase Transparency for Consumers

Published: 10 April 2024 at 09:11

Technology

The Federal Communications Commission has approved new rules requiring broadband labels to be similar to nutritional labels, providing clear information on pricing and performance for home and mobile internet services to help consumers avoid hidden fees and rate hikes. Starting April 10, internet service providers must display these labels at all points of sale and disclose pricing details, data limits, speeds, and link to network and privacy policies. The Biden administration aims to combat opaque fee structures across various industries, ensuring transparency for consumers.

DEEP DIVE

FCC Requires Cable TV Providers to Display Total Subscription Costs Clearly

The Federal Communications Commission (FCC) has mandated cable and satellite TV providers to prominently display total subscription prices as a single line item, including extra fees, to prevent misleading practices. The new rule aims to aid customers in comparing prices accurately and eliminating unexpected fees. Additionally, the FCC proposed eliminating early termination fees. The move seeks to simplify consumers' ability to compare services and prevent bill surprises. The FCC also addressed internet availability issues, highlighting that millions of Americans lack high-speed internet access. The FCC also approved a cybersecurity product label to ensure tech products meet rigorous security standards.

FCC to Vote on Reinstating Net Neutrality Rules

The Federal Communications Commission will vote on reinstating net neutrality rules at its April 25 meeting, aiming to ensure equal access to all content and applications. FCC Chair Jessica Rosenworcel highlighted the importance of broadband as an essential service, emphasizing the need for oversight. President Biden prioritized reinstating these rules, originally adopted under President Obama. Democrats, now in control of the FCC, seek to undo Trump-era policies that argued against net neutrality. Rosenworcel believes the reclassification will provide the FCC with enhanced national security capabilities.

Communications Act of 1934 (Wikipedia)

The Communications Act of 1934 is a United States federal law signed by President Franklin D. Roosevelt on June 19, 1934, and codified as Chapter 5 of Title 47 of the United States Code, 47 U.S.C. § 151 et seq. The act replaced the Federal Radio Commission with the Federal Communications Commission (FCC). It also transferred regulation of interstate telephone services from the Interstate Commerce Commission to the FCC.The first section of the act originally read as follows: "For the purpose of regulating interstate and foreign commerce in communication by wire and radio so as to make available, so far as possible to all the people of the United States a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges, for the purpose of the national defense, for the purpose of promoting safety of life and property through the use of wire and radio communication, and for the purpose of securing a more effective execution of this policy by centralizing authority heretofore granted by law to several agencies and by granting additional authority with respect to interstate and foreign commerce in wire and radio communication, there is hereby created a commission to be known as the Federal Communications Commission, which shall be constituted as hereinafter provided, and which shall execute and enforce the provisions of this Act."; although it has since been amended.On January 3, 1996, the 104th Congress of the United States amended or repealed sections of the Communications Act of 1934 with the Telecommunications Act of 1996. It was the first major overhaul of American telecommunications policy in nearly 62 years.

Federal Communications Commission (Wikipedia)

The Federal Communications Commission (FCC) is an independent agency of the United States government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdiction over the areas of broadband access, fair competition, radio frequency use, media responsibility, public safety, and homeland security.The FCC was formed by the Communications Act of 1934 to replace the radio regulation functions of the previous Federal Radio Commission. The FCC took over wire communication regulation from the Interstate Commerce Commission. The FCC's mandated jurisdiction covers the 50 states, the District of Columbia, and the territories of the United States. The FCC also provides varied degrees of cooperation, oversight, and leadership for similar communications bodies in other countries in North America. The FCC is funded entirely by regulatory fees. It has an estimated fiscal-2022 budget of US $388 million. It has 1,482 federal employees as of July 2020.