United States: The Federal Communications Commission (FCC) has approved rules that would compel major US broadband internet providers to start listing information similar to nutrition labels on food products starting on April 10 for the benefit of consumers searching for internet-related services.
Implementation Timeline
Verizon Communications noted they would commence the mislabeling system on Wednesday. The FCC first enforced the labels in 2022. In October, the smaller companies will start making labels, as reported by Reuters.
The FTC’s rules would mandate disclosure of prices, speeds, fees, and data allowances for wireless and wired products by simply labeling them at the point of sale.
Verizon’s Chief Customer Experience Officer Brian Higgins said in an interview that these labels will provide consumers with “a level playing field” for their product offerings, speeds, and price comparisons.
Ensuring Clarity and Accessibility
Higgins said that standardized labels across the sector would “make the comparison between carriers easier for customers.” However, Customers would still need to research a variety of packages from different carriers.
The labels were first rolled out as a voluntary system in 2016. The FCC strictly followed the laws passed by Congress under the 2021 Infrastructure Act.
“Consumers will finally get information they can use to comparison shop, avoid junk fees, and make informed choices about which high-speed internet service best fits their needs and budget,” FCC Chair Jessica Rosenworcel said.
Labels must be clear and displayed prominently on the main buying pages. They “cannot be buried in multiple clicks or reduced to a link or icon that a consumer might miss,” characterized Rosenworcel.
FCC’s Ongoing Consumer Protection Efforts
The FCC is investigating issues of pricing disclosure and this month adopted new rules allowing cable and satellite TV providers to disclose the “all-in” price, which will replace the “misleading practice of describing video programming costs as a tax, fee, or surcharge.”
The FCC has also proposed preventing tiered TV and cable providers from charging consumers for early termination fees. Additionally, the FCC requires subscribers of tiered TV providers or cable to refund customers if the latter cancels their subscription before the closing of the billing cycle, as reported by Reuters.
Leave a Reply