FCC votes to scrap mandatory itemisation of ISP passthrough fees

The US Federal Communications Commission has voted 3-0 to eliminate a Biden-era requirement for internet service providers to itemise all "passthrough" fees on broadband price labels. The new rules permit ISPs to display these costs as an aggregate "up to" amount rather than listing them individually, and allow providers to link to labels instead of displaying them prominently on ordering pages.

FCC Chairman Brendan Carr and Commissioner Anna Gomez approved the measure, citing reduced compliance burdens for providers and simpler labels for consumers. Carr argued that previous rules resulted in cluttered labels that strayed beyond the statutory framework Congress envisioned, increasing compliance costs without aiding consumers. However, critics argue the changes obscure true pricing, allowing ISPs to continue advertising artificially low prices while hiding the full cost of service.

The final order, which took effect 30 days after publication in the Federal Register, retains specific disclosure requirements. ISPs must provide two subcategories for passthrough fees: those remitted to state and local governments, and those remitted to third parties. Each subcategory must include a link to a provider-managed webpage explaining what each fee type, such as E911 or pole attachment fees, means and what it is used for.

Gomez described the final order as a compromise from the initial draft proposal. While she stated she would have preferred to keep requiring full itemisation of fees, she noted that consumers now have the option to click on links to learn more about fee types. The rules also allow ISPs to provide hyperlinks or icons to price labels in customer account portals, rather than displaying the full labels prominently.

Additionally, the new rules permit ISPs to have customer service representatives discuss label information conversationally over the phone, rather than reading it verbatim. Phone conversations must still convey critical information, including the monthly price inclusive of fees, introductory rates, speeds, latency, data allowances, contract terms, and early termination fees. The final order retains the requirement for labels to be accessible in the languages used to market the services.