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US broadband providers to begin providing new comparison labels
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US broadband providers to begin providing new comparison labels
Mar 20, 2024 6:38 AM

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.

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