Federal Communications Commission Chairman Brendan Carr says Internet service providers shouldn't have to list every fee they charge. Responding to a request from cable and telecom lobby groups, he is proposing to eliminate a rule that requires ISPs to itemize various fees in broadband price labels that must be made available to consumers.
The rule took effect in April 2024 after the FCC rejected ISPs' complaints that listing every fee they created would be too difficult. The rule applies specifically to recurring monthly fees "that providers impose at their discretion, i.e., charges not mandated by a government."
ISPs could comply with the rule either by listing the fees or by dropping the fees altogether and, if they choose, raising their overall prices by a corresponding amount. But the latter option wouldn't fit with the strategy of enticing customers with a low advertised price and hitting them with the real price on their monthly bills. The broadband price label rules were created to stop ISPs from advertising misleadingly low prices.
This week, Carr scheduled an October 28 vote on a Notice of Proposed Rulemaking (NPRM) that proposes eliminating several of the broadband-label requirements. One of the rules in line for removal requires ISPs to "itemize state and local passthrough fees that vary by location." The FCC would seek public comment on the plan before finalizing it.
"We propose to eliminate the requirement that providers itemize discretionary, recurring monthly fees that represent costs they choose to pass through to consumers and which vary by consumer location," Carr's draft proposal said. "Examples include state and local right of way fees, pole rental fees to utility companies, and other discretionary charges where the provider does not set rates or terms directly. We seek comment on whether providers should instead display on the label the aggregate amount of such fees."
So many fees, they “overwhelm” other label info
The proposal is part of Car's "Delete, Delete, Delete" initiative that aims to eliminate as many rules as possible. In the Delete, Delete, Delete proceeding, cable lobby group NCTA and other broadband industry groups asked the FCC to ditch the list-every-fee requirement and other broadband label rules.