FCC launches broadband ‘nutrition’ label to help consumers comparison shop
PHOENIX (AZFamily) — Starting today, it should be easier to comparison shop for an internet service provider. The Federal Communications Commission is now requiring broadband providers to post easy-to-read pricing labels.
“I think it’s a really good, commonsense way to help people understand what they’re paying for because I think right now there’s an awful lot of confusion in the marketplace,” said Justin Brookman, Consumer Reports’ director of technology policy. “You start by paying $80 a month, and suddenly in six months you’re paying $200. You don’t know what fees you’re getting. It’s really hard to compare and contrast what two different offerings would be, even from the same company.”
The new broadband labels resemble food nutrition labels. Consumers will be able to see the breakdown of the monthly price, whether it’s an introductory rate, the length of the contract, any additional charges, and the speed of service. It also shows what the early termination fee would cost. These labels must be posted at the point of sale, online and in stores.
“A separate label must be displayed for each standalone broadband service offered, and it cannot be buried in multiple clicks or reduced to a link or an icon that a consumer might miss,” said Alejandro Roark, the bureau chief for the FCC’s consumer and governmental affairs bureau.
Consumer advocates say it is a win for transparency in pricing. Still, challenges remain for customers who want to shop around for service.
“Unfortunately in this country, a lot of folks don’t have a lot of choice. You only have one service provider, and so that’s something this is not going to fix,” Brookman said. “If you have to go to Cox, you have to go to Cox. If you have to go to Comcast, you have to go to Comcast But still, this way it will be harder for them to hide what you’re actually paying, which is something that’s been a huge problem for folks for a long time.”
T-Mobile launched labels for all of its plans ahead of the FCC’s deadline.
Lumen, the parent company for CenturyLink and Quantum Fiber did, too. “The labels are available at point of sale whether customers are shopping on the Quantum Fiber and CenturyLink websites or with our customer reps in person or on the phone,” the company wrote in a statement to On Your Side. “We have always shared clear and straightforward pricing details with consumers seeking Quantum Fiber services. Pricing details across companies will highlight the advantages that Quantum Fiber provides customers. Quantum Fiber offers various multi-gigabit speeds with unlimited data in many areas to help consumers choose the internet service that will best meet their needs and budget.”
Cox is also implementing the new pricing labels. “The new Broadband Facts Label (BBFL) aligns with Cox’s existing practice of transparent pricing,” the company said in a statement. “Beginning April 10, whenever customers purchase new broadband internet service or make changes to their existing service, they will receive a Broadband Facts Label (BBFL) at point of sale.”
If an internet service provider has fewer than 100,000 subscribers, they have several more months to post pricing labels to comply with the FCC rule.
If a broadband company is not displaying the new labels, or the information on the labels in inaccurate, consumers can file a complaint with the FCC.
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