Biden takes aim at cable and satellite TV early termination charges in latest 'junk fee' proposal - so what does it mean for your service?
- The proposed change would eliminate cable and satellite early cancelation fees
- It is the latest move in the Biden administration's crackdown on 'junk fees'
- Cable and satellite providers lost 1.8 million subscribers in Q2, analysts say
The Biden administration has made a proposal to ban cable and satellite TV providers from charging consumers early-termination fees to exit their contracts.
It would require providers to both eliminate such fees and to issue customers with a prorated refund for the days of service remaining in their billing cycle.
The proposed change was brought by the Federal Communications Commission (FCC), which will take an initial vote on December 13, the agency said in an announcement.
The move is part of the White House's larger crackdown on 'junk fees' following President Biden's 2021 executive order to promote competition in the US economy.
![The proposal was brought by FCC Chairwoman Jessica Rosenworcel (pictured in 2022). The agency said it would conduct an initial vote on December 13](https://i.dailymail.co.uk/1s/2023/11/23/21/78173535-12785161-image-m-33_1700773248932.jpg)
The proposal was brought by FCC Chairwoman Jessica Rosenworcel (pictured in 2022). The agency said it would conduct an initial vote on December 13
![President Biden said of the fees: 'It's unfair, raises costs, and stifles competition. We're doing something about it.' He is pictured on Tuesday](https://i.dailymail.co.uk/1s/2023/11/23/21/78173523-12785161-image-a-32_1700773205762.jpg)
President Biden said of the fees: 'It's unfair, raises costs, and stifles competition. We're doing something about it.' He is pictured on Tuesday
The cost of early termination fees can vary, but is usually based on a specific amount, for example $40, multiplied by the number of months a subscriber has left in their contract at the time of cancellation.
'When companies charge customers early termination fees, it limits their freedom to choose the service they want,' FCC Chairwoman Jessica Rosenworcel said in a statement on Tuesday.
'In an increasingly competitive media market, we should make it easier for Americans to use their purchasing power to promote innovation and expand competition within the industry,' she added.
But the proposal did not go unopposed. Republican FCC Commissioner Brendan Carr argued it would give 'the federal government a roving mandate to micromanage nearly every aspect of how the Internet functions.'
![The change proposed by the FCC would require providers to both eliminate such fees and to issue customers with a prorated refund for the days of service remaining in their billing cycle](https://i.dailymail.co.uk/1s/2023/11/24/03/78173527-12785161-The_change_proposed_by_the_FCC_would_require_providers_to_both_e-a-92_1700796505930.jpg)
The change proposed by the FCC would require providers to both eliminate such fees and to issue customers with a prorated refund for the days of service remaining in their billing cycle
![Cable and satellite TV companies lost 1.8 million subscribers in the second quarter of this year, according to analysts](https://i.dailymail.co.uk/1s/2023/11/24/03/78174589-12785161-Cable_and_satellite_TV_companies_lost_1_8_million_subscribers_in-a-93_1700796506226.jpg)
Cable and satellite TV companies lost 1.8 million subscribers in the second quarter of this year, according to analysts
The president supported the proposal, writing on X, formerly Twitter: 'Companies shouldn't lock you into services you don't want with large fees.
'It's unfair, raises costs, and stifles competition. We're doing something about it.'
If passed, the change would be a major blow to cable and satellite TV companies, which lost 1.8 million subscribers in the second quarter of this year, analysts for research institute MoffettNathanson noted in a September report.
In June the FCC granted initial approval to a proposal requiring cable operators and satellite providers to specify the 'all-in' price clearly and prominently in promotional materials and bills.