Unveiled on Monday, the broadband labels—which are modeled after nutrition labels—will include prices, hidden fees, overage fees, data allowances, broadband speed and other performance metrics.
“Customers deserve to know the price they will actually pay for a service and to be fully aware of other components such as data limits and performance factors before they sign up for service,” said Tom Wheeler, FCC Chairman, in a press release.
According to the FCC’s press release, the government agency receives more than 2,000 complaints on a yearly basis about “surprise fees associated with consumers’ internet service bills.” These labels are intended to provide greater transparency and cut back on consumer confusion. But ISPs aren’t mandated to issue the labels. Right now, they are merely recommended by the FCC’s Consumer Advisory Committee, which included representatives from Verizon, T-Mobile, CenturyLink and the National Cable & Telecommunications Association.
There is nothing new on the labels. In fact they contain information Internet Service Providers are required to disclose to consumers under the FCC’s Open Internet transparency rules, which were passed last year. The rules still need further approval from the Office of Management and Budget but would require companies to make more specific disclosures about their services and fees. Really, the labels are just meant to streamline the dissemination of this information.