FCC calls for end to ‘misleading’ cable and DBS charges

US watchdog the Federal Communications Commission (FCC) has ruled that cable and satellite TV providers must specify the “all-in” price for video programming services clearly and prominently in their promotional materials and on subscribers’ bills. 

FCC chair Jessica Rosenworcel (source: FCC)

The FCC said it aimed to eliminate the misleading practice of describing video programming costs as a tax, fee, or surcharge.

The regulator said that the new rules would empower consumers to comparison shop among competitors and to compare programming costs against alternative programming providers, including streaming services.

The new rules require cable operators and direct broadcast satellite providers to state the total cost of video programming service clearly and prominently, including broadcast retransmission consent, regional sports programming, and other programming-related fees, as a prominent single line item on subscribers’ bills and in promotional materials.

The FCC said that charges and fees for video programming are often obscured in misleading promotional materials and bills, which causes significant and costly confusion for consumers.

The commission is already preparing an upcoming launch of mandatory Broadband Consumer Labels and has said it aimed to eliminate early termination feeds imposed by cable and satellite TV providers.

“Across the economy, consumers are frustrated with junk fees.  They are tired of seeing one advertised price and then paying something different when the bill comes due.  They are fed up with special surcharges, line items, and tacked-on costs.  That is why nearly four out of five people in this country support federal legislation to crack down on junk fees.  This is no surprise because these fees make it hard to contrast like services and can quickly turn what seemed like a good deal into a not-so-good one,” said FCC chairwoman Jessica Rosenworcel,

Commissioners Starks and Gomez approving.  Commissioners Carr and Simington dissenting.  Chairwoman Rosenworcel, Commissioners Carr, Starks, and Simington issuing separate statements.