ISPs will have to declare everything up front

Apr 4, 2016 20:20 GMT  ·  By

Inspired by food nutrition labels, the Federal Communications Commission (FCC) has approved the creation of "broadband labels" that will reveal all the costs and details of an ISP's broadband service.

The details printed on such labels will include data such as service price, overage fees, equipment costs, administrative fees, termination fees, data plan limits, broadband speed, and other performance metrics.

The current broadband labels are not mandatory and are part of the FCC's Open Internet initiative. The Commission hopes that both wired and mobile broadband operators will adopt them on their own, as a sign of good will toward their users.

The labels were approved by the FCC's Consumer Advisory Committee, which includes delegates from various large Internet service providers like Verizon, T-Mobile, CenturyLink, and even Google.

This means that ISPs are generally in favor of these new labels, which the FCC hopes will serve to educate users about the real cost of an Internet service, just as nutrition labels educate consumers about a food item's real content.

Broadband labels are part of the FCC's net neutrality agenda

The FCC worked with the Consumer Financial Protection Bureau when it created these labels, and ISPs that provide them for their service offerings will automatically satisfy a set of requirements adopted last year, with the rest of the net neutrality rules.

"These labels provide consumers clarity about the broadband service they are purchasing, not only helping them to make more informed choices but also preventing surprises when the first bill arrives," said Chairman Wheeler. "Customers deserve to know the price they will actually pay for a service and to be fully aware of other components such as data limits and performance factors before they sign up for service."

The FCC adds that it receives around 2,000 user complaints about Internet service bills. Most users claim that the costs are actually 40 percent higher than what the ISPs are advertising.

Sample of an FCC-approved "Broadband Label"
Sample of an FCC-approved "Broadband Label"

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FCC introduces Broadband Labels
Sample of an FCC-approved "Broadband Label"
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