FCC cracking down on cable ‘junk fees’

The Federal Communications Commission (FCC) adopted new rules Thursday requiring cable and satellite television providers to clearly display their “all-in” prices, as part of the Biden administration’s effort to crack down on so-called “junk fees.”

Under the new rules, providers will have to include the total cost of video programming, including any additional programming-related fees, in promotional materials and bills.

“No one likes surprises on their bill,” FCC Chair Jessica Rosenworcel said in a statement. “The advertised price for a service should be the price you pay when your bill arrives. It shouldn’t include a bunch of unexpected junk fees that are separate from the top-line price you were told when you signed up.”

“It is not just annoying; it makes it hard for consumers to compare services in a market that is evolving and has so many new ways to watch,” she added.

According to the agency, between 24 percent and 33 percent of consumers’ bills for cable and satellite television come from additional fees, such as “Broadcast TV Fees,” “Regional Sports Surcharges” and “HD Technology Fees.”

“The bottom line is we do not have to have junk fees,” Rosenworcel said. “We can have bills that are transparent and fair. This is a step in that direction and that is good news for consumers.”

However, NCTA, a trade association that represents cable programmers and providers, argued that providers already offer “clear and accurate pricing information” to subscribers, including “all-in” pricing information.

“Today’s misguided action will not help consumers and will only add confusion from government-imposed ad requirements,” NCTA said in a statement Thursday.

“The FCC’s micromanagement of advertising in today’s hyper-competitive marketplace will force operators to either clutter their ads with confusing disclosures or leave pricing information out entirely,” it added. “For consumers, it’s a lose-lose proposition.”