Getty Images | Andrei Popov
New proposals targeting hidden fees charged by cable and satellite companies could force TV providers to clearly list “all-in” prices.
The proposal, released today by Federal Communications Commission Chairman Jessica Rosenworthel, would require cable and direct broadcast satellite providers to provide “video programming, including broadcast retransmission consents, regional sports programming, and other program-related fees. Require the total cost of service to be clearly and conspicuously stated as a single, prominent line item on subscribers’ bills and promotional materials.”
TV providers typically advertise low rates that do not include charges such as “television broadcast” or “local sports network” rates. Cable and satellite companies say they can cover their programming costs with these fees.
But paying for shows is part of the cost of doing business. After all, there is no TV channel lineup without channels. By treating programming costs as a separate fee, TV providers advertise fees that are far from what customers actually have to pay. Comcast, for example, adds nearly $40 to your monthly TV bill in the form of telecast and local sports network fees.
No mention of timing of voting
According to a Rosenworcel press release, her “proposals are intended to eliminate the misleading practice of describing the cost of these video shows as taxes, fees or surcharges. This updated “all In” pricing formats allow consumers to make informed choices, including the ability to compare. Buy among competing providers and compare programming costs with alternative programming providers, including streaming services. ”
It’s not clear when the FCC will vote on this plan. Rosenworcel has circulated a Notice of Proposed Rulemaking (NPRM) to fellow commissioners, his FCC spokesperson told Ars today. Documentation is not published.
If the item is in circulation, the commissioner can vote at any time. NPRM is also not final. A public comment period has begun, and a vote on the final rule may take place in the coming months.
Rosenworcel still leads the FCC despite not winning a Democratic majority in more than two years since Joe Biden took office. Biden candidate Gigi Song resigned earlier this month after the Senate failed to vote on whether to confirm her nomination.
Broadband Regulations Approved but Not Yet Enforced
Rosenworcel’s new proposal is aimed at TV providers only, but the FCC has already adopted rules requiring broadband providers to “display clear labels so that consumers can compare purchases of broadband services.” . Future broadband disclosures will be modeled on nutrition labeling.
The broadband label was mandated by legislation passed by Congress in November 2021. The FCC has finalized plans to implement a broadband label in November 2022, but the directive is not yet in effect.
Internet providers with 100,000 or more subscribers must comply six months after the White House Office of Management and Budget completes a review of the rules required by the Federal Paperwork Reduction Act, according to FCC order . A small broadband provider takes him a year to become compliant.
