FCC to Vote on Ending Rule for ISP Fee Transparency on July 22

The Federal Communications Commission (FCC) will vote on July 22 to eliminate a rule that mandates Internet Service Providers (ISPs) to disclose all passthrough fees in their pricing labels. This change could make it more challenging for consumers to understand the true costs of their broadband services.

Changes to ISP Fee Disclosure Requirements

The proposed FCC order seeks to allow ISPs to combine various fees into a single "up to" amount. This means that instead of itemizing each charge, providers can display an aggregate fee that includes both government and non-government charges. The FCC draft states, "Rather than continuing to require providers to itemize 'passthrough fees' that can vary by location, we allow providers to display such fees in the aggregate." This change has raised concerns among consumer advocates regarding transparency.

Under the new proposal, ISPs will also be permitted to provide links to pricing labels instead of displaying them prominently on their websites. This could result in fewer consumers accessing the full pricing information when signing up for services. The FCC argues that this approach allows for a more conversational presentation of pricing details by sales representatives.

Impact of Passthrough Fees on Consumers

Passthrough fees can encompass various charges that ISPs are not required to roll into their base prices. These fees may include:

• State and local right-of-way fees
• Utility pole attachment fees
• Other charges imposed by third-party infrastructure owners

According to the FCC's definition, these fees are not considered taxes, meaning they can significantly affect the total monthly bill that consumers see. Consumer advocacy groups have expressed concern that this change could exacerbate the issue of hidden fees and make it harder for customers to understand their billing.

Consumer Advocacy and Regulatory Concerns