As of Wednesday, Internet service providers are required by the Federal Communications Commission to display standardized labels with basic information about their broadband services when selling to consumers.
The new label is similar to a food nutrition label and aims to improve transparency by disclosing details of broadband prices, speeds, data allowances, privacy policies and introductory fees.
“Today is an exciting day for consumers,” FCC Chair Jessica Rosenworcel said in a press release. “These ‘nutrition label’ disclosures are designed to make it easier for consumers to know what they are getting, help providers keep their promises, and benefit from increased competition. This means better service and prices for everyone.”
The Infrastructure Investment and Jobs Act of 2021 directs the FCC to mandate broadband consumer labels, and next year rules requiring internet service providers to display labels in stores for both in-person and online purchases. introduced.
The label must be available on fixed internet services and mobile broadband plans, according to the FCC.
Providers with more than 100,000 subscribers are now required to display labels to consumers at the time of purchase. Businesses with fewer than 100,000 subscribers have until October 10 to comply with the new rules. By the same date, all broadband labels must be machine-readable so that consumers can use comparison shopping tools.
CBS News reported that some providers, including Verizon and Google Fiber, began using the label before the FCC deadline.
“Verizon supports the goal of the FCC Broadband Label to ensure consumers know all the facts before choosing a home Internet provider. “We decided to launch the label last month ahead of the launch,” Verizon said. a spokesperson told CBS News.
