FCC proposal would force ISPs to notify you about hidden fees, data caps, and more
The FCC has voted to begin drafting a new rule that would require broadband and cable companies to be more transparent about hidden fees, data caps and other restrictions that are often undisclosed or difficult to understand.
The proposal comes after big companies like Comcast and AT&T have come under fire for what many see as unfair business practices, with the latter being fined by the FCC for falsely advertising “unlimited” data and then implicitly imposing restrictions anyway .
The proposal, first proposed in 2016, stated that ISPs could provide broad transparency through “nutrition labels,” like labels on food packaging. “Nutrition labels at grocery stores make it easy to compare calories and carbohydrates,” says FCC boss Jessica Rosenworcel. “We need the same simple broadband label – so we can compare price, speed and data. No more charges for the small print version.”
After being put on hold by previous presidential administrations, Congress ensured that President Biden’s recently passed infrastructure bill included the idea of reviving the FCC. Even so, the FCC needs a majority to push through the new requirements, which will require some key nominations. Once a majority is established, the new rules are expected to pass.
In other consumer protection news, Microsoft will begin canceling dormant Xbox Live Gold and Game Pass subscriptions as part of an agreement with the Competition and Marketing Authority. While the new practice is currently only active in the UK, it is expected to roll out globally in the coming months.
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