In another vote split down party lines, the Federal Communications Commission will mandate that cable and satellite television providers clearly disclose the total, or “all-in,” price for video service packages. The 3-2 vote was decided at the FCC’s March meeting and is the latest in Commissioner Rosenworcel’s push for pricing transparency.
This move targets the elimination of hidden fees often found in service advertisements and monthly bills, ensuring consumers are fully informed about the actual costs.
The FCC’s decision saw Chairwoman Rosenworcel and Commissioners Starks and Gomez in favor, with Commissioners Carr and Simington dissenting.
Under the new regulations, all charges associated with video programming – such as broadcast retransmission and regional sports fees – must be consolidated into a single line item on both promotional materials and subscriber bills.
In addition to introducing “all-in” pricing, the FCC is advancing the rollout of Broadband Consumer Labels for clearer service plan information and proposals to eliminate early termination fees.
In Chairwoman Rosenworcel’s statement, she said, “The bottom line is we do not have to have junk fees. We can have bills that are transparent and fair. This is a step in that direction and that is good news for consumers.”
Commissioner Starks added, “Today, we take a stand. The hard-to-understand asterisks and fine print that litter advertisements and bills for cable and satellite TV service soon will be extinct. Generally, providers may choose to charge whatever price they believe the market will bear, but to keep that market robust and equitable, consumers must have the ability to make informed choices.”
After the vote, America’s Communications Association was quick to respond, saying that the new rule doesn’t actually target the real issue. “ACA Connects Members support providing easy-to-understand and transparent pricing for customers. However, this order fails to meet that goal because it does nothing to address a driving cause of sticker shock—broadcasters’ retransmission consent fees forced on cable providers and, ultimately, on their customers, said ACA Connects President Grant Spellmeyer.
“Further, the heavy-handed requirements are more likely to confuse people than increase transparency and will create implementation challenges for providers. With the Commission moving forward on this complex and counterproductive ‘all-in pricing’ order, we again urge it to address this root cause of hidden pricing with retransmission consent reform.”
