When you sign up for a new internet package, it’s not always easy to know how much you’ll be charged or what speeds you’ll get, but starting this week, new rules should change that by requiring providers to prominently display informational labels wherever you buy internet service, whether online or in Spectrum or Verizon storefronts.
The label is similar to the nutrition facts labels required on food packaging or stickers you see in the windows of car dealerships: The goal is to give people accurate information to compare plans.
The labels are mandated by the Federal Communications Commission after more than a decade of lobbying by Consumer Reports and other advocacy groups. Rules requiring the labels were first adopted by the FCC in 2016 but were never implemented.
Large internet service providers (those with at least 100,000 subscribers) must implement the new labels starting April 10. Smaller ISPs have until Oct. 10, 2024 to comply. The rules apply to all internet services, including 5G wireless home internet currently offered by T-Mobile and other companies.
“Broadband labels are an important step in establishing a fairer marketplace,” said Justin Brookman, director of technology policy at Consumer Reports. “Searching for a new internet provider can be a daunting and stressful process, and these labels will help people make informed purchasing decisions.”
Why do we need broadband labels?
When you sign up for Internet service, you don’t always know how much it’ll cost until you receive your first bill. That’s because there are extra fees that aren’t included in the advertised price, even if they’re listed in the fine print. It can be hard to know how much your Internet bill will cost, especially if you bundle it with cable TV or phone service.
The FCC announced the new labeling requirements for 2022 on the same day that Consumer Reports released the results of an extensive investigation into more than 22,000 internet bills, which uncovered many confusing fees and a lack of transparency.
For example, some companies did not list the internet rate separately when internet service was bundled with cable television or phone service, leaving consumers uncertain about what their broadband actually cost.
Additional charges proved particularly confusing, as it was often hard to tell whether they related to broadband or another bundled service. Discounts and promotions were also confusing, leaving consumers unsure when promotional discounts would end and what prices would be after that.
What information does the label contain?
As you can see from this FCC sample, the new labels will include the name of the provider, the name of the plan offered, the monthly base rate for Internet service, and any additional one-time or recurring charges, such as installation fees or equipment rental fees, which must be separated from the base rate. The label must indicate whether it is a fixed or mobile broadband service.
The terms and duration of the promotional price, as well as the price of the service after the promotional period ends, must be clearly stated. Companies must also provide a link to information about discounts if customers purchase Internet service bundled with television or other services.
The label must also include information about the typical upload and download speeds, as well as latency, that consumers can expect.
Finally, the labels must tell consumers how to contact customer support, provide links to the ISP’s privacy policy and network management practices, and include information about the FCC’s Affordable Connectivity Program.
The FCC has created a glossary to help consumers understand all the terms used on broadband labels.
Where can I find the new labels?
Broadband labels should be prominently displayed and easily accessible everywhere consumers buy internet service. When you go to an ISP’s website, you can tell them where you live and the label will appear, as plans vary by location.
The labels must also be clearly visible in stores and other physical locations where broadband services are sold.
If you choose to order Service over the phone, your ISP may send you the label via text or email during the call or may direct you to a website where the label is displayed, in which case the ISP must record that you were directed to another location to view the label.
What about people who have lost their sight?
Under the new rules, ISPs must make information on labels accessible to people with disabilities wherever they are sold. ISPs are “strongly encouraged” to follow provisions of the Americans with Disabilities Act and Web Content Accessibility Guidelines, including measures such as audio-only or sign language versions of online information. In physical stores, labels must include Braille and large print versions.
Secondly, the labels should support machine readability, for example by providing the information in a spreadsheet file on the ISP’s website, so that organizations such as Consumer Reports can understand the rates of internet companies and create price comparison tools.
What if my ISP doesn’t have a label?
The FCC has not said what fines or other penalties it will impose on ISPs that do not comply with the broadband labeling order, but said any penalties imposed on violators must be “sufficient” to deter non-compliance and not “so minor as to become a provider’s cost of doing business.”
The order does not say whether the FCC’s Enforcement Division will conduct random inspections to ensure ISPs are accurately disclosing pricing and service information, but it says existing enforcement mechanisms should be able to enforce the new requirements.
The bureau said it will investigate complaints from consumers who believe their ISPs are not following the new rules. Complaints can be filed with the FCC’s Consumer Inquiry and Complaint Center.
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