The big picture: Cable and satellite television providers must soon disclose "all-in" pricing in their marketing. All-in pricing refers to the cost of the service plus all required fees. The industry has a long tradition of hiding the extra costs of TV and internet access, then springing the charges on the customer with the first bill.
The Federal Communications Commission approved the new rules on March 14 but didn't release the final draft until Tuesday. The regulations primarily aim to disclose broadcast and regional sports fees. These surcharges allow providers to rebroadcast content through their service even though customers can view it for free over the airwaves.
It also calls out arguably unnecessary charges like "HD Technology fees."
"The record indicates that approximately 24 to 33 percent of a consumer's bill is attributable to company-imposed fees such as 'Broadcast TV Fees,' 'Regional Sports Surcharges,' 'HD Technology Fees,' and others, and that the 'dollar amount of company-imposed fees has skyrocketed,'" the final regulation draft reads.
Many of the extra charges are "pass-on" fees. These are expenditures that most companies absorb as the cost of doing business while raising their final price to the customer to compensate. Many cable companies, particularly Comcast, do not absorb these fees but rather tack them onto customers' bills solely to advertise a lower service price.
"Providers that communicate a price for video programming in promotional materials shall state the aggregate price for the video programming in a clear, easy-to-understand, and accurate manner," the FCC order reads. "If part of the aggregate price for video programming fluctuates based upon service location, then the provider must state where and how consumers may obtain their subscriber-specific 'all-in' price [I.e., via email or other means]."
Big Cable is unsurprisingly furious with the rules, saying the Commission is guilty of "micromanagement" and that the regulations will make advertising more burdensome and "confusing."
"[The Commission'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," the cable lobbying group NCTA (formerly known as the National Cable & Telecommunications Association) threatened.
Of course, blaming the FCC for the cable industry's inability to produce honest, transparent, and simple-to-read ad copy is nothing more than weak posturing to excuse bad behavior. Despite that, there is a good chance the NCTA will sue to block the FCC regulations since it has already formally condemned the proposal and challenged the FCC's authority to enforce them.
The regulations still face an "information-collecting" process and a review by the US Office of Management and Budget. These legal hurdles must be completed within nine months. The rules will take effect once it clears the red tape, which could be as early as April 10.
"Beginning April 10, 2024, consumers should look for broadband labels at any point of sale, including online and in stores," the FCC says. "The labels must disclose important information about broadband prices, introductory rates, data allowances, and broadband speeds. They also include links to information about network management practices and privacy policies."
https://www.techspot.com/news/102340-fcc-finally-bans-cable-industry-hidden-fee-scam.html
