The labels are required to be displayed wherever home internet and mobile broadband plans are available, including in stores and online.
Jon Donenberg, deputy director of the White House’s National Economic Council, cast the labels during a call with reporters as part of the Biden administration’s effort to fight unfair pricing across the economy as consumers grapple with rising costs. “It will make sure that you have a clear, straightforward explanation” of internet costs, he said.
In recent weeks, the administration has also announced it will cap credit card late fees and has launched a “strike team” to probe pricing practices in prescription drugs, groceries, housing and financial services.
On the new labels, internet service providers are required to list the monthly fee, whether the price is a discounted introductory rate, and the price once the introductory period is over. Additional costs such as rental fees for modems and other equipment, activation fees, early termination fees and government taxes also must be itemized.
The companies must also provide the typical download and upload speeds, the amount of data included in the monthly price, and charges for extra data usage.
If a provider is not displaying the label or has posted inaccurate information, consumers can file a complaint with the FCC at consumercomplaints.fcc.gov. The label requirement goes into effect Wednesday for providers with more than 100,000 subscribers, while smaller providers have until October to comply.
The FCC has authority to impose monetary penalties on companies under Section 503 of the Communications Act, and it has periodically invoked this power against major internet service providers. In 2015, it fined AT&T $100 million after accusing the company of improperly slowing internet speeds for customers after they used a certain amount of data despite advertising the plans as “unlimited.”
But consumer complaints about opaque advertising practices in the industry remain widespread. A Consumer Reports study in 2022 that analyzed more than 22,000 broadband bills concluded that many of them were “bundled” TV, phone and internet packages that made it impossible for consumers to discern the cost for internet services alone. The study also found that download speeds consistently fell short of advertised speeds and that add-on fees were often confusing.
Alejandro Roark, head of the FCC’s consumer and governmental affairs bureau, told reporters on Tuesday that the labels are based on earlier voluntary labels that the FCC explored in 2016.
The introduction of the mandatory labels was praised by consumer advocates.
“The broadband label is a critical step toward establishing a fairer marketplace,” Justin Brookman, director of technology policy at Consumer Reports, said in a statement. “Internet providers have long obscured the true cost of the services they provide.”
Comcast’s business broadband website says that it is providing the labels in accordance with the new FCC requirements but that the monthly price on the labels may be different from what it advertises.
“The price displayed at the top of the Broadband Facts label reflects our regular monthly service charge and does not include any discounts or promotions. For example, limited time offers or discounts for enrolling in Auto Pay and Paperless Billing are not included in the price on the label,” Comcast’s website says.
