FCC Unveils Consumer Broadband Labels to Provide Greater Transparency to Consumers

The Federal Communications Commission announced new broadband labels to provide consumers of mobile and fixed broadband Internet service with easy-to-understand information about price and performance. These labels should help consumers make informed decisions about the purchase of broadband service.

FCC Chairman Tom Wheeler, joined by Consumer Financial Protection Bureau Director Richard Cordray, unveiled the new broadband labels at an event attended by members of the FCC’s Consumer Advisory Committee. This committee, composed of consumer group and industry representatives, made a unanimous recommendation of the labels’ framework. The consumer broadband labels will provide consumers with more information on service speed and reliability and greater clarity regarding the costs of broadband service, including fees and other add-on charges that may appear on their bills. The FCC’s Open Internet transparency rules require broadband Internet access service providers to disclose this information to consumers in an accurate, understandable and easy-to-find manner. These formats, while not mandated by the agency, are recommended by the Commission and will serve as a “safe harbor” to meet those requirements.

The Consumer Broadband Labels will include:

• Price: Price points, including various charges that seem confusing to consumers like overage, equipment, early termination and administrative fees.
• Data Allowances: This is the carrier-defined plan limit after which consumers will face some consequence, such as additional charges or slowed data speeds.
• Performance: Broadband speed and other performance metrics.