FCC Floats Ban on Cable TV 'Junk Fees' That Make It Hard To Ditch Contracts

The Federal Communications Commission has taken a step toward prohibiting early termination fees charged by cable and satellite TV providers. From a report: If given final approval, the FCC action would also require cable and satellite providers to provide a prorated credit or rebate to customers who cancel before a billing period ends. The new rules are being floated in a Notice of Proposed Rulemaking (NPRM) that the FCC voted to approve this week in a 3-2 vote, with both Republicans dissenting. The NPRM seeks public comment on the proposed rules and could lead to a final vote in a few months or so.

'Today's action proposes to adopt customer service protections that prohibit cable operators and DBS (Direct Broadcast Satellite) providers from imposing a fee for the early termination of a cable or DBS video service contract,' the FCC said. 'Additionally, the NPRM recommends the adoption of customer service protections to require cable and DBS providers to grant subscribers a prorated credit or rebate for the remaining whole days in a monthly or periodic billing cycle after the subscriber cancels service.'

FCC Chairwoman Jessica Rosenworcel said, 'Consumers are tired of these junk fees. They now have more choices when it comes to video content. But these friction-filled tactics to keep us subscribing to our current providers are aggravating and unfair. So today we kick off a rulemaking to put an end to these practices.' Cable lobby group NCTA-The Internet & Television Association opposes the plan and said it will submit comments to support 'consumer choice and competitive parity.'

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