Chairwoman Rosenworcel Announces Proposal in Continued Fight Against Video Service Junk Fees to Promote Competition

Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel announced a proposal to eliminate video service junk fee billing practices by cable operators and direct broadcast satellite (DBS) service providers and study their impact on consumer choices. The proposal will be voted on during the December 13, 2023 Open Meeting. TV video service subscribers may terminate service for any number of reasons, including moving, financial hardship, or poor service. Early termination fees require subscribers to pay a fee for terminating a video services contract prior to its expiration date, making it costly for consumers to switch services during the contract term. Recently, the Executive Order on Promoting Competition in the American Economy encouraged the Commission to consider “prohibiting unjust or unreasonable early termination fees for enduser communication contracts; enabling consumers to more easily switch providers” in order to promote competition and lower prices. In addition to today’s proposal, the FCC is also implementing Broadband Consumer Labels and has proposed ‘all-in-pricing’ for cable and satellite services.