FCC Bans Misleading Hidden Fees on Cable TV Bills, Saving Consumers Money

FCC Mandates Transparent Pricing for Cable and Satellite TV Providers

New Rule Aims to Eliminate Misleading Fees and Charges

In a move to protect consumers from unexpected costs, the Federal Communications Commission (FCC) has adopted a new rule requiring cable and satellite TV providers to display the total price of subscription plans as a single, prominent line item. This “all-in” pricing approach will include costs that were previously described as extra fees, making it easier for customers to compare prices against competing providers and streaming services.

No one likes surprises on their bill. 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 that are separate from the top-line price you were told when you signed up.

FCC Chairwoman Jessica Rosenworcel emphasized the importance of transparent pricing in a separate statement (pdf), highlighting the need to eliminate the “misleading practice of describing video programming costs as a tax, fee, or surcharge.”

New Rules Apply to Both Bills and Promotional Materials

The FCC’s new rules for transparent pricing on video programming will apply to both subscribers’ bills and promotional materials. The Commission noted that companies often obscure certain costs and fees, leading to “significant and costly confusion for consumers.” In addition to the new pricing rules, the FCC has also proposed eliminating early termination fees issued by cable and satellite TV providers.

Bills like this example from Spectrum will be required to clearly display the total price, including the extra fees and charges.

Cable Providers Argue Against the Ruling

While the new rule may provide relief to consumers who are tired of being surprised by unexpected additional fees, cable providers like Comcast, Cox, and Charter have argued that it’s unnecessary. The Internet & Television Association (NCTA) called the ruling “misguided” and claims it will only cause further confusion.

Cable providers offer clear and accurate pricing information to attract and retain subscribers, including ‘all-in’ pricing information before signing up for service. The FCC’s micromanagement of advertising in today’s hyper-competitive marketplace will force operators to either clutter their ads with confusing disclosures or leave pricing information out entirely.

Despite the pushback from cable providers, the FCC remains committed to ensuring that consumers have access to transparent and accurate pricing information when choosing their video programming services.

Disclosure: Comcast is an investor in Vox Media, The Zero Byte’s parent company.