FCC eliminates rule requiring itemized ISP passthrough fees on broadband labels

FCC Reverses Fee Itemization Rule

The Federal Communications Commission (FCC) today voted to eliminate a Biden-era rule that mandated Internet service providers (ISPs) list all "passthrough" fees individually on broadband price labels. This decision reverses a 2023 update to broadband-label rules designed to prevent bill shock and aid consumers in comparing prices.

Shift to Aggregate Fee Disclosure

Instead of itemizing each fee, ISPs will now be permitted to display an aggregate "up to" amount for all passthrough fees. FCC Chairman Brendan Carr proposed this change, which was approved by a 3-0 vote, with Democrat Anna Gomez joining the Republican majority. The final order is not yet public, but Commissioner Gomez indicated that labels will now provide a description of fees remitted to state and local governments and third parties, rather than a full itemized list.

Impact on Consumer Transparency

This regulatory change allows ISPs to continue advertising artificially low prices by separating additional costs from the advertised rate. Consumers may find it harder to determine their actual monthly bill, as the new system makes it more difficult to compare prices accurately across different providers. The previous rule aimed to ensure consumers understood the full cost upfront.

ISP Concerns and Accessibility

ISPs had previously complained about the burden and complexity of itemizing all passthrough fees. In addition to the change in fee display, Chairman Carr also proposed allowing ISPs to provide links to the required price labels instead of prominently displaying them on ordering pages and account portals, potentially making the labels less accessible to customers.