New FCC rules require internet providers to be more transparent about pricing and fees

New rules adopted by the FCC require internet service providers to create "broadband labels" based on the FDA's food nutrition labels that will ensure transparency of pricing and fees.

Federal Communications Commission Commissioner Brendan Carr testifies during a House Energy and Commerce Subcommittee on Communications and Technology hearing on March 31, 2022. The FCC adopted new regulations that will require internet service providers to create "broadband labels" to explain to customers exactly what goes into the cost of their service by April 10, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

Hidden fees and unexpected rate hikes have dogged consumers shopping for internet service for years, and the Biden administration has been cracking down on "junk fees" (opaque and misleading fee structures) across industries — including banking, hotel and airline pricing, and utility and phone services — for the past several years.

On a call Tuesday, a spokesperson for the FCC clarified that the labels "cannot be buried in multiple clicks" or hidden in a way that a consumer might miss.

"Fees can make it hard to understand the true cost of an internet plan," said Donenberg, adding that the agency is "committed to rooting out surprise junk fees that some companies pile on to your bills."

A glossary is available to help consumers better understand the information displayed on the label.

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If a provider does not display their labels or posts inaccurate information about its fees or service plans, consumers can file a complaint with the FCC Consumer Complaint Center.

While many providers will begin displaying their labels in April, some firms with less than 100,000 subscribers will have until Oct. 10, 2024, to comply with the FCC rules.

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