Federal Communications Commission Acts Against Video Service Junk Fees
The Federal Communications Commission adopted a Notice of Proposed Rulemaking that proposes to eliminate video service junk fees from cable operators and direct broadcast satellite providers and to study the impact of these practices on consumer choices. Early termination fees require subscribers to pay a fee for terminating a video service contract prior to its expiration date, making it costly for consumers to switch services. Because these fees may have the effect of limiting consumer choice, they may reduce competition for video service.