The next time you're in the market for a home or mobile internet plan, you'll notice a new label that clearly outlines what you'll pay, the expected download speeds, and details about the internet provider's policies.
This information will now be standardized across all providers and presented in a new disclosure format inspired by the nutrition labels found on food packaging.
Reporters work on their laptops as Democratic presidential hopeful Sen. Barack Obama (D-IL) speaks during a campaign event at Vernier Software & Technology on May 9, 2008, in Beaverton, Oregon. Oregon will hold its Democratic primary on May 20. (Photo by Mark Wilson/Getty Images)
Mandating Consumer-Brand Labels
Internet service providers (ISPs) are introducing mandatory broadband "nutrition" labels that display speeds, fees, and data allowances. These labels aim to eliminate hidden charges and unexpected additional costs. Now, CNN reported that consumers can ensure transparency before signing up with an ISP.
As of today, major ISPs with over 100,000 subscribers must prominently display these "nutrition labels" both in-store and online, as per the new FCC regulation. Referred to as "consumer broadband labels," these will provide details about the ISPs' plans, fees, and any extra charges, such as activation fees and equipment rental fees.
Moreover, the labels must specify whether advertised rates are introductory or discounted and the duration of the lower rate. Additionally, they must disclose each plan's download and upload speeds, along with any associated early termination fees.
FCC's Approach, Standardization
ISPs are prohibited from burying these labels behind multiple clicks or obscuring them with other elements. They must be easily accessible through customer account portals, and ISPs are required to provide a copy upon request.
Alejandro Roark, the FCC's bureau chief for consumer and government affairs, explained to reporters on a conference call that the FCC adopted the format of nutrition labels from food products to ensure that essential information about broadband internet service is readily recognizable and understandable.
Providers with fewer than 100,000 subscribers will have until October 10 to comply with the new requirements. If you encounter any ISP that fails to display the required label or provides inaccurate information, you can file a complaint with the commission through its official portal.
The idea of nutrition labels for ISPs was first proposed by the FCC in 2016. However, it wasn't until 2022 that formal rules were introduced, requiring these labels to be displayed at ISPs' points of sale. Akin to nutrition labels for food, these labels aim to provide transparency regarding every dollar spent on wired or wireless plans.
When the rule was announced, FCC Chairperson Jessica Rosenworcel highlighted that the agency approved and implemented it as part of their initiative to eliminate unexpected fees and confusing terms and conditions.
Many Americans, especially in rural and tribal areas, still lack access to high-speed internet. Additionally, nearly 23 million households, or around 1 in 5 in the US, are at risk of losing their internet plans due to the depletion of funds for a federal aid program.
This could force many to choose between internet access and essential expenses like groceries.
