Starting Wednesday, internet service providers (ISPs) are implementing a new way to help consumers understand their monthly internet bills. The Federal Communications Commission (FCC) now mandates that providers must offer notices that resemble nutrition labels, breaking down the components of the internet service and their costs.
These labels won't list calories or sugar content, but instead, broadband consumers will find details such as monthly price, discounts, internet speed range, data limits, network management and privacy policies, customer support contacts, as well as any extra charges and terms like early termination or late fees.
These new labels aim to enable consumers to easily compare plans based on price and internet speeds. For instance, individuals looking for high-speed connections for online gaming can check the download, upload, and latency speeds, while those more concerned about cost can focus on the monthly price and additional charges at the top of the label for a specific service plan.
The largest ISPs will have to display these labels to consumers before they purchase a service plan either online or in a store. The information is required for any standalone home or fixed internet service, as well as mobile broadband plans, according to an FCC fact sheet.
The price breakdowns on the label may be used for comparison shopping purposes. In a video message about the announcement released Wednesday morning, President Biden referred to the move as an effort to eliminate so-called junk fees.
"Folks, my administration is taking a major step toward eliminating junk fees on internet bills," Mr. Biden said in a video message on his POTUS social media accounts. "The FCC is requiring internet providers to tell you exactly what you're paying, exactly what you're getting, when you purchase your internet plan, all on one simple label," President Biden said.
The new label originates from an October 2023 FCC rule that requires internet service providers (ISPs) with over 100,000 subscribers to display the label at the time of purchase. ISPs with 100,000 or fewer customers have until Oct. 10 to display the label for customers.
By then, providers will also be required to make the consumer label machine readable, which will allow third parties to better compile the data on internet service plans so consumers can compare plans.
Some internet providers have already jumped ahead of the FCC's deadline and are already using the labels.
"Embracing transparency and empowering consumers, we aim to simplify the understanding of our broadband plans," Comcast now states on its official website.
Leading the way in this initiative, AT&T Fiber, a division of AT&T providing high-speed internet services in specific regions, recently introduced its version of a nutritional label for customers.
