FCC Rejects Petition to Reconsider Broadband Consumer Label Rules
A petition called for broadband consumer label to not require providers to disclose monthly fees.
WASHINGTON, August 29, 2023 – The Federal Communications Commission largely rejected petitions to reconsider its Broadband Consumer Label rules Tuesday.
“Today’s action preserves consumer access to clear, easy-to-understand and accurate information about the cost and performance of broadband services,” read the press release.
FCC Chairwoman Jessica Rosenworcel said that “every consumer needs transparent information when making decision about what internet service offering makes the most sense for their family or household. No one wants to be hit with charges they didn’t ask for or they did not expect. That’s why Broadband Consumer Labels are so important.”
The broadband labels were adopted as part of the Infrastructure Investment and Jobs Act which requires that broadband internet service providers display labels at the point of sale that disclose information about broadband prices, introductory rates, data allowances and broadband speeds. Additionally, the labels provide information about network management practices, privacy policies and the FCC’s Affordable Connectivity Program which subsidizes high-speed internet subscriptions for low-income households.
Experts disagree, however, on whether the labels should require more data from internet service providers. The FCC released proposed rules in July that would add additional requirements to the nutrition labels, to which several providers and associations expressed that the additional rules would place undue burden on small providers and would not improve data.
Others said that the increased requirements would improve user experience, calling the current requirements inadequate to provide data as comprehensive as is necessary.
A petition jointly filed by broadband advocacy groups ACA Connects, CTIA, NCTA, NTCA, and USTelecom in January called for the FCC do not require that providers disclose monthly fees or that they instead display an “up to” price for certain fees they choose to pass through to consumers. They also requested that the providers include details about data allowances on the label.
In response to petitions that the FCC clarify or reconsider certain label requirements, the FCC reaffirmed its original requirement that providers display all monthly fees with respect to broadband service on the label. It said that such requirements will “provide consumers with clear and accurate information about the cost of their broadband service.”
Broadband labels have received criticism from the industry, with some claiming that it needs to incorporate average speeds of internet packets instead of just typical speeds.
