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FCC Rule Change Could Mask ISP Costs
7 Jul
Summary
- FCC may simplify internet fee disclosures.
- Critics fear hidden costs and less transparency.
- Vote scheduled for July 22 meeting.
The Republican-led FCC is set to vote on July 22 regarding proposed changes to internet "nutrition label" disclosures. The commission suggests that detailing every fee can confuse consumers, arguing for a simpler approach.
The proposal aims to eliminate the requirement for Internet Service Providers (ISPs) to list all "passthrough fees," which are additional charges from government entities or third-party suppliers that vary by location. Instead, ISPs may be allowed to display an aggregate, maximum "up to" amount for these fees across all service areas.
Consumer groups, including the Benton Institute for Broadband & Society, have voiced concerns that this change could obscure the true cost of service, thereby defeating the purpose of the broadband labels. They argue that consumers cannot assess costs accurately if fees are hidden.
Conversely, the FCC cites feedback suggesting that excessive itemization creates cognitive burdens for consumers and administrative burdens for providers who must generate numerous labels for varying fee structures. The commission believes a single, aggregated fee amount will aid consumer comparison and prevent bill shock, as the "up to" amount ensures bills do not exceed the disclosed maximum.
Other proposed changes include allowing phone sales representatives to present label information conversationally and enabling ISPs to link to broadband labels rather than fully displaying them on order pages. The requirement to keep label contents in separate machine-readable files is also being reconsidered.
