FCC proposes rule to ban early termination fees for cable and satellite service contracts
The Federal Communications Commission (FCC) announced on Tuesday a proposal to ban early termination fees for cable and satellite service contracts, a move that aims to give more control to consumers.
Under the proposed rule, cable operators and direct broadcast satellite (DBS) providers would be required to eliminate early cancellation fees. Additionally, these companies would have to provide customers with a prorated credit or rebate for the remaining days within a billing cycle after cancellation.
FCC Chairwoman Jessica Rosenworcel emphasized the importance of protecting consumers from having to pay “junk fees” for services they don’t want or can’t use. The proposed rule is part of the White House’s broader effort to eliminate surplus fees, as outlined in President Joe Biden’s executive order to promote competition in the U.S. economy.
Biden has highlighted the impact of fees on stifling competition, particularly in the cable television sector. He stated that companies should not be able to lock consumers into unwanted services with large fees, as this is unfair and raises costs.
In addition to the proposed rule on early termination fees, the FCC has also announced the implementation of Broadband Consumer Labels, which provide consumers with easily accessible information about the functions and costs of broadband services. The agency has also proposed “all-in” pricing for cable and satellite services, ensuring that customers see the total service costs upfront, including fees.
Overall, the FCC’s actions reflect a focus on empowering consumers and promoting competition in the media market. This move is expected to make it easier for Americans to use their purchasing power to drive innovation and expand competition within the industry.
It is important to note that Comcast is the parent company of CNBC.
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