No More Hidden Internet Fees — FCC Forces ISPs To Show True Costs Like 'Nutrition Labels'

The Federal Communications Commission (FCC) has now mandated Internet Service Providers (ISPs) to display ‘nutrition labels’ for their broadband plans.

What Happened: The FCC’s nearly eight-year-long battle has come to an end. From today, all but the smallest ISPs must publish these labels on all their plans. According to a press release by the FCC, the labels are designed to help consumers compare plans and avoid hidden fees.

These labels will be visible when shopping for standalone homes, fixed internet plans, or new mobile broadband plans. They will include monthly broadband prices, introductory rate details, data allowances, broadband speeds, and links to discover any available discounts or service bundles. The labels will be available both online and at physical stores.

The new labels aim to reduce the practice of ISPs misrepresenting actual connection speeds. Major broadband providers have previously opposed the rule, arguing that such labels would be too costly and complicated to implement.

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Verizon, Google Fiber, and T-Mobile have already released labels ahead of the deadline. The FCC’s official compliance deadline for major ISPs was Apr. 10th, while smaller ISPs have until Oct. 10 to implement the labels.

Why It Matters: This new mandate comes amid a challenging time for ISPs. A federal program that has been instrumental in providing free or heavily discounted high-speed internet to approximately 23 million American households is likely to undergo substantial cuts in May.

This could significantly impact companies like AT&T Inc T, Verizon Communications VZ, and Charter Communications CHTR.

Moreover, the FCC has faced criticism for its decisions regarding broadband subsidies. In December, SpaceX CEO Elon Musk criticized the FCC’s decision to deny SpaceX's Starlink $885.5 million in rural broadband subsidies as ‘extremely unethical and politically partisan.'

Republican senators and representatives also accused the FCC of being “wasteful” in providing a $30 broadband discount to poor people. Introducing these ‘nutrition labels’ could be seen as a step towards increased transparency in the sector.

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