FCC Forces Cable Firms to Show Single Price, No Hidden Fees

Cable and satellite-TV providers will need to make sure bills and ads clearly display a total price for video subscribers, including extra fees that can amount to hundreds of dollars a year, under a rule adopted Thursday by the Federal Communications Commission.

“No one likes surprises on their bill,” Democratic FCC Chairwoman Jessica Rosenworcel said. “The advertised price for a service should be the price you pay when your bill arrives. It shouldn’t include a bunch of unexpected junk fees.”

Consumer charges have become an increasing focus under the administration of President Joe Biden as he seeks re-election. His administration introduced a bundle of cost-cutting measures on March 5, including capping late fees for credit card borrowers and limits on cable charges by landlords.

The FCC rule adopted Thursday at a meeting in Washington would require cable and satellite providers to clearly state the total cost, including fees for TV station signals and regional sports programming, as a prominent, single line item.

Charges such as a broadcast TV fee, regional sports fees and set-top box rentals add $37 to a consumer’s monthly bill, or as much as one-third of the total, the advocacy groups Consumer Reports and Public Knowledge told the FCC.

Cable providers called the FCC rule unnecessary, arguing that consumers already have full information about fees. Because broadcast fees and regional sports costs vary, it would be technically challenging and costly to target advertising to each market, according to a filing by the NCTA, the Internet & Television Association that includes Comcast Corp. and Charter Communications Inc.

For the FCC, the proposal is the latest in its price transparency initiative. In November, the agency voted to require broadband providers to display easily understood labels about the cost, speed and data allowances of their internet services. The agency also has proposed prohibiting pay-TV operators from imposing a fee for early termination of a service contract, saying such charges can restrict consumer choice.

To contact the reporter on this story:
Todd Shields in Washington at tshields3@bloomberg.net

To contact the editors responsible for this story:
Molly Schuetz at mschuetz9@bloomberg.net

Andrew Pollack

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