ISPs Created So Many Fees That FCC Will Kill Requirement To List Them All

FCC Chairman Brendan Carr says Internet service providers shouldn't have to list every fee they charge. From a report: Responding to a request from cable and telecom lobby groups, he is proposing to eliminate a rule that requires ISPs to itemize various fees in broadband price labels that must be made available to consumers.

The rule took effect in April 2024 after the FCC rejected ISPs' complaints that listing every fee they created would be too difficult. The rule applies specifically to recurring monthly fees 'that providers impose at their discretion, i.e., charges not mandated by a government.'

ISPs could comply with the rule either by listing the fees or by dropping the fees altogether and, if they choose, raising their overall prices by a corresponding amount. But the latter option wouldn't fit with the strategy of enticing customers with a low advertised price and hitting them with the real price on their monthly bills. The broadband price label rules were created to stop ISPs from advertising misleadingly low prices.

This week, Carr scheduled an October 28 vote on a Notice of Proposed Rulemaking (NPRM) that proposes eliminating several of the broadband-label requirements. One of the rules in line for removal requires ISPs to 'itemize state and local passthrough fees that vary by location.' The FCC would seek public comment on the plan before finalizing it.

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