The Federal Communications Commission is preparing to vote on an order that would remove a requirement for internet providers to list all “passthrough” fees on broadband pricing labels, according to an FCC draft order from Chair Brendan Carr and reporting by Ars Technica.
For cable and fiber customers, the fight is about the number that appears before checkout. The Biden-era FCC under Jessica Rosenworcel adopted broadband “nutrition labels” meant to show the real cost of internet service in a standardized format, including monthly prices, usage limits, restrictions and add-on fees. The labels did not ban junk fees or rate hikes. They required more disclosure.
Carr’s draft order says the 2022 rules produced labels that could confuse consumers, went beyond what Congress required and raised compliance costs for providers. The order says the agency is trying to keep broadband labels “clear, accurate, and concise” as a shopping tool.
The proposed rollback targets the fee disclosures that make the labels useful when an advertised price is not the bill a household actually pays. Ars Technica reported that the FCC vote could also make the labels less easy for consumers to find.
What the labels were supposed to do
The label system came out of a congressional requirement tied to the infrastructure law, which also included $42.5 billion for broadband deployment. Congress directed the FCC to create consumer-facing broadband labels as part of a broader attempt to improve transparency while federal money flowed into networks.
Under Rosenworcel, the FCC required providers to present standardized information about broadband plans. The idea was borrowed from nutrition labels on food: put the important terms in one place so customers can compare offers without spelunking through footnotes, promo rates and post-sale fees.
That was already a modest fix. It did not address the lack of competition in many local broadband markets, where customers may have one or two realistic wired options. It also depended on providers displaying accurate labels and on the FCC enforcing the rule.
Compliance was uneven. A review cited by Community Networks found that many providers did not follow the label rules, and said the FCC under Biden did not seriously enforce them. In other words, the existing system was more disclosure regime than consumer shield.
The fight over transparency
Telecom companies have long opposed rules that force more detailed price disclosures, and Ars Technica reported that providers pushed the Trump administration to dismantle the passthrough-fee requirement. Comcast, AT&T, Verizon and Charter are among the large companies affected by broadband labeling rules.
Carr’s order keeps the label concept in place while reducing what providers must disclose. That distinction matters legally and politically: Congress required labels, but the FCC controls the details of what goes on them and how accessible they must be.
The practical effect, if the FCC adopts the order, is narrower price disclosure for broadband customers. Providers would still have labels, but consumers may get less information about the extra charges that turn a marketed internet price into the monthly amount on the bill.
This story draws on original reporting from Techdirt.
