New FCC-Mandated Broadband Labels: A Game Changer for Home and Mobile Internet Shoppers
The shopping experience for home or mobile internet plans is set to undergo a significant transformation as the Federal Communications Commission (FCC) introduces new standardized labels. These labels will provide consumers with clear and easily understandable information regarding costs, typical download speeds, and essential policies of various internet service providers (ISPs).
Beginning this Wednesday, major ISPs will be obligated to display these new consumer broadband labels at the point of sale both contact and in retail stores. The labels are modeled after nutrition labels found on food packaging, aiming to make essential broadband internet service information easily recognizable and accessible.
The introduction of these labels is part of the US government’s efforts to help consumers navigate the intricate mix of plans, fees, and promotional rates that exist in today’s market. The transparency these labels offer could potentially save American consumers money, as reported by FCC and White House officials.
Alejandro Roark, the FCC’s bureau chief for consumer and government affairs, explained during a conference call that “the FCC borrowed the nutrition label model format from food products because we wanted to make basic information about broadband internet service easily recognizable and easy to understand.”
These mandatory disclosures will cover aspects like early termination fees, data caps, and network practices such as speed throttling. They must be easily accessible, with providers prohibited from hiding the labels in fine print or on separate web pages. Consumers should be able to refer to them effortlessly whenever they pay their bills or wish to compare plans.
The lack of competition in many areas, particularly rural and tribal regions, has left millions of Americans with limited access to high-speed internet. The FCC reported last month that approximately 59 million Americans still don’t have access to high-speed internet, with the issue being particularly prevalent in rural and tribal areas.
Moreover, around 23 million households (representing nearly 1 in 5 US households) risk losing their internet plans due to the impending expiration of the Affordable Connectivity Program. Without this federal aid program, these families might have to prioritize paying for groceries over maintaining internet access at home.
The FCC’s push toward greater transparency could be a small yet significant step towards fostering competition among internet providers. It is also part of the broader Biden administration’s efforts to combat deceptive fees and business practices.
A White House official on the call noted, “These are mechanisms which are designed to make it more likely that companies will compete with each other on the grounds of consumer price and quality of products and less likely to compete with each other on confusing terms or by misleading customers.”
The genesis of these labels dates back to 2016 when an FCC advisory committee presented a preliminary version that ISPs were not required to adopt. However, with the enactment of the 2021 bipartisan infrastructure law, the FCC initiated the process to mandate broadband disclosure labels and finalized their design.
These labels have the potential to offer consumers an easier way to compare plans and services from providers like Comcast, Verizon, and AT&T. Furthermore, their machine-readable format could enable researchers and product review sites to gather valuable data on ISPs’ plans and marketing efforts.
The FCC officials will closely monitor the implementation of these labels, ready to investigate or issue fines if evidence or consumer complaints of non-compliance arise.
