The Federal Communications Commission has mandated that all major internet service providers (ISPs) must now provide standardized disclosure labels for their home and mobile internet plans. These labels are modeled after the nutrition labels found on food packaging and aim to provide consumers with clear information about pricing, typical download speeds, and the provider’s policies. By making this information easily accessible and easy to understand, the FCC hopes that Americans will be able to save money when choosing an internet plan.
The consumer broadband labels, which will be required at the point of sale both online and in stores, must include information about early termination fees, data caps, and network practices like speed throttling. Providers are prohibited from burying the labels in fine print or on separate web pages, and consumers must be able to refer to them conveniently when comparing plans or paying bills. The goal is to improve transparency in the industry and make it easier for consumers to understand what they are getting with their internet service.
Although the new disclosure labels are a step towards consumer empowerment, there are still challenges in the internet service industry. Many Americans, particularly those in rural and tribal areas, do not have access to high-speed internet. Additionally, millions of households are at risk of losing their internet plans due to the end of a federal aid program. The Biden administration is working to address junk fees and misleading business practices in the industry as part of a broader effort to improve competition among providers.
The development of the consumer broadband labels has been years in the making, with the latest version being a result of the 2021 bipartisan infrastructure law. These labels will enable consumers to compare plans and offerings from providers like Comcast, Verizon, and AT&T more easily. The labels will also be machine-readable, allowing researchers and product review sites to gather data on ISPs’ plans and marketing. The FCC will be monitoring for any non-compliance with displaying the labels and will investigate or fine providers who do not adhere to the new requirements.
Overall, the implementation of standardized disclosure labels for internet plans is a positive step towards helping consumers make informed decisions about their purchases. By providing clear information about pricing, speeds, and policies, the FCC aims to empower consumers and promote competition among providers based on price and quality of products. The new labels will not only benefit individual consumers but also researchers and product review sites looking to gather data on the offerings of major ISPs.
