Cable and satellite TV companies will need to show the complete cost of their services clearly and visibly in promotions and bills due to a new regulation established by the Federal Communications Commission.
The FCC announced that providers must indicate the inclusive prices in order to encourage the companies to remove what it referred to as the deceptive practice of labeling video programming costs as a tax, fee, or surcharge.
“No one enjoys surprises on their bill,” expressed FCC Chairwoman Jessica Rosenworcel in a statement. “The advertised price for a service ought to be the amount you pay when your bill arrives. It shouldn’t involve unexpected additional fees that are separate from the initial price you were informed of when you signed up.”
The agency maintained The use of “all-in” pricing assists consumers in making informed decisions, “including the ability to compare among competitors and to contrast programming costs against alternative programming providers, such as streaming services.”
“TV providers frequently employ deceptive additional charges to conceal the actual price of their services,” according to the agency.
FCC Commissioner Brendan Carr had a differing opinion, stating that the agency lacks legal authority over satellite billing, cable advertising, or satellite advertising.
“I concur that the commission can regulate cable bill disclosures,” Carr remarked in a statement. “If the issue were confined to that, I could have offered my support. However, the matter extends further and deviates significantly from our legal jurisdiction.”
This suggests that cable and satellite operators may be able to resist some of the regulations.
The NCTA, which represents internet and television providers, submitted comments to the FCC prior to the decision indicating that all-in pricing is unnecessary given the competitive nature of the industry, and that the implementation of the rules “would only introduce needless complications and confusion to the detriment of consumers.”
The FCC disclosed that the action is part of a broader initiative by the Biden administration to combat deceptive fees and promote transparency for consumers.
The agency also intends to introduce mandates next month for broadband providers to offer clear, straightforward, and accurate details about the cost and performance of high-speed internet service, and has proposed regulations to eliminate termination fees before video service contract expiration dates and billing cycle fees.
“Fundamentally, we don't have to tolerate deceptive fees,” Rosenworcel highlighted. “We can have bills that are transparent and impartial.”
