The Federal Communications Commission (FCC) is proposing the use of broadband "nutrition labels", including such information as speed and data allowances, as well as price and possible price increases. The FCC hopes to empower consumers to make better, more informed choices.
"The proposal would require broadband providers to display, at the point of sale, labels that show prices, including introductory rates, as well as speeds, data allowances, network management practices, and other critical broadband service information," an FCC press release reads.
Consumers have complained for years about sudden price increases and fees on broadband. On Thursday, Jan. 27, the FCC voted unanimously to hold internet providers responsible for including broadband "nutrition labels" in an attempt to address the issue.
"Access to accurate, simple-to-understand information about broadband Internet access services helps consumers make informed choices and is central to a well-functioning marketplace that encourages competition, innovation, low prices, and high-quality service," the FCC continues.
The idea of using point-of-sale labels, so-called "nutrition labels", was first introduced on a voluntary basis at the end of the last term of President Barack Obama, but they fell to the wayside during the Trump Administration.
In the summer of 2021, President Joe Biden signed an executive order requiring the FCC to introduce new regulations to give consumers more and better broadband service options. The FCC is now following that order by building on the label concept introduced in 2016.
"In a grocery store nutrition labels make it easy to compare calories & carbohydrates," FCC Chairwoman Jessica Rosenworcel wrote on Twitter (NYSE: TWTR). "We need the same simple labels for broadband--so we can compare price, speed & data. No more fees in fine print."
The FCC's proposal is now in a commenting period. The rules are set to become official by Nov. 15. At that point, it's expected to become a part of Biden's infrastructure bill.
"The 'nutrition labels' we seek comment on today will help households compare prices and service offerings, making it easier for them to find the right package and the best deal," FCC Commissioner Geoffrey Starks, D, said on Thursday. "Arming consumers with better information will also promote greater innovation, more competition, and lower prices for broadband-wins for the entire broadband ecosystem."
Internet providers appear to be in agreement with the FCC on the introduction of more informative labels. Broadband provider trade group NCTA first endorsed the idea in 2016, and it has come out in support of the FCC's recent proposal.
"Cable operators are committed to providing consumers with relevant information about broadband services," the NCTA wrote in a statement.