WASHINGTON, March 20 (Reuters) - Major U.S. broadband
internet providers must start displaying information similar to
nutrition labels on food products to help consumers shop for
services starting on April 10, under new rules from the Federal
Communications Commission (FCC).
Verizon Communications ( VZ ) said it will begin providing
the labels on Wednesday. The FCC first moved to mandate the
labels in 2022. Smaller providers will be required to provide
labels starting in October.
The rules require broadband providers to display, at the
point of sale, labels that show prices, speeds, fees and data
allowances for both wireless and wired products.
Verizon Chief Customer Experience Officer Brian Higgins said
in an interview the labels will help consumers make "an equal
comparison" between product offerings, speeds and fees.
Higgins said standardized labels across the industry "make
it easier for customers to do a comparison of which provider is
going to be the best fit for their needs." He said customers
will still need to research various bundling offers across
carriers.
The labels were first unveiled as a voluntary program in
2016. Congress ordered the FCC to mandate them under the 2021
infrastructure law.
"Consumers will finally get information they can use to
comparison shop, avoid junk fees, and make informed choices
about which high-speed internet service is the best fit for
their needs and budget," FCC Chair Jessica Rosenworcel said.
Labels must be fully displayed on main purchasing pages and
"cannot be buried in multiple clicks or reduced to a link or
icon that a consumer might miss," Rosenworcel added.
The FCC is addressing various pricing disclosure issues and
this month adopted rules requiring cable and satellite TV
providers to specify "all-in" prices prominently to end what the
commission said was the "misleading practice of describing video
programming costs as a tax, fee, or surcharge."
The FCC has also proposed to bar cable and satellite TV
providers from charging consumers early-termination fees to exit
contracts and to refund subscribers if they cancel prior to the
end of a billing cycle.