ISPs created so many fees that FCC will kill requirement to list them all

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The FCC was required by Congress to implement broadband-label rules, but the Carr FCC says the law doesn’t “require itemizing pass through fees that vary by location.”

“Commenters state that itemizing such fees requires providers to produce multiple labels for identical services,” the FCC plan says, with a footnote to comments from industry groups such as USTelecom and NCTA. “We believe, consistent with commenters in the Delete, Delete, Delete proceeding, that itemizing can lead to a proliferation of labels and of labels so lengthy that the fees overwhelm other important elements of the label.”

In a blog post Monday, Carr said his plan is part of a “focus on consumer protection.” He said the FCC “will vote on a notice that would reexamine broadband nutrition labels so that we can separate the wheat from the chaff. We want consumers to get quick and easy access to the information they want and need to compare broadband plans (as Congress has provided) without imposing unnecessary burdens.”

ISPs would still be required to provide the labels, but with less information. The NPRM said that eliminating the rules targeted for deletion will not “change the core label requirements to display a broadband consumer label containing critical information about the provider’s service offerings, including information about pricing, introductory rates, data allowances, and performance metrics.”

ISPs said listing fees was too hard

In 2023, five major trade groups representing US broadband providers petitioned the FCC to scrap the list-every-fee requirement before it took effect. Comcast told the commission that the rule “impose[s] significant administrative burdens and unnecessary complexity in complying with the broadband label requirements.”

Rejecting the industry complaints, then-Chairwoman Jessica Rosenworcel said that “every consumer needs transparent information when making decisions about what Internet service offering makes the most sense for their family or household. No one wants to be hit with charges they didn’t ask for or they did not expect.”

The Rosenworcel FCC’s order denying the industry petition pointedly said that ISPs could simplify pricing instead of charging loads of fees. “ISPs could alternatively roll such discretionary fees into the base monthly price, thereby eliminating the need to itemize them on the label,” the order said.



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