MoneyConsumerConsumer Reports

Actions

New FCC mandated labels for cable, internet providers to start appearing this month

Posted

NASHVILLE, Tenn. (WTVF) — Wouldn’t it be nice if shopping for internet service was easy to read and simplified like an itemized invoice? Even a nutrition label?

Starting this month for many customers, that’s a reality.

Roland Netzer says his internet bill is confusing.

“They run good deals at the beginning that after a while go away,” Netzer said.

“Unfortunately, we're often at the mercy of these companies who can charge us whatever they want, and they don't necessarily tell us what they're charging us," said Consumer Reports' Justin Brookman. "So at least with the broadband label, we should have some better sense of what we're paying for.”

As you can see from this FCC sample – the new labels show the name of the provider, the name of the plan, and the base monthly price for internet service, along with any additional one-time or recurring fees –  like installation charges, modem rental fees, and other equipment-related fees.

Those must be broken out separately from the base price.

The new labels are mandated by the Federal Communications Commission after nearly a decade of lobbying by Consumer Reports and other advocacy groups.

“Cable bills are one area where we've gotten the most complaints from consumers. Sign up for one plan and then you're getting a broadband modem fee, you're getting a regional sports package fee, you're getting this weird tax that's four letters, you don't know what it is," Brookman explained. "These are often monopolies, so they can get away with it, and so you don't have a lot of choices. But at least now you can know what they're charging you.”

The terms and length of promotional pricing must be outlined. Along with the price of service once the promotion expires.

Companies should have links to information about discounts if customers bundle their internet with TV or other services.

Welcomed news for customers like Netzer, who depend on a good internet connection for a reasonable price.

“You want to make sure that you’re getting what you want and not paying for all these things you don’t need,” he said.

The rule applies to all internet services. Smaller ISPs have until October to comply.

The FCC says consumers can file a complaint if they believe an ISP isn’t complying with the new rules.