The FCC voted Thursday on proposed rules to require sellers to give customers what’s been called a “broadband nutrition label” at the point-of-sale. If the changes become permanent, broadband providers must provide customers with easy-to-understand labels to allow comparison shopping. Both wireless and wireline providers would need to display labels that show prices, including introductory rates, as well as speeds, data allowances, and network management practices, for example.
The proposed changes are based on voluntary labels the agency put in place in 2016, however these are mandatory. FCC Chairwoman Jessica Rosenworcel said during the vote the Commission’s last effort “never got that far.” What’s different now, she said, “We want to end efforts to bury facts in the fine print and stop unexpected fees. We want to make it easier for consumers to compare their options and understand what they are signing up for.”
Commissioner Geoffrey Starks agreed, explaining, “Shopping around for the best broadband plan can be a lot of work.” Commissioner Brendan Carr agreed with his colleagues, but supports extending the transparency concept to “Big Tech,” saying these companies “provide less transparency than broadband providers regarding their practices and commercial terms. “This week, four state Attorney General’s sued Google for misleading consumers about when google was tracking their location information,” he asserted.
In the Notice of Proposed Rulemaking, the FCC seeks comment on how consumers evaluate broadband plans and whether the 2016 labels will help them with the purchase process; whether the 2016 labels should be updated in terms of content and format; and whether the Commission should provide new instructions about where providers must display the labels.
The Infrastructure Act requires the FCC to adopt regulations within a year of its passage and to conduct a series of public hearings to help inform the labeling requirements.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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