The next time you set out to shop for a home or mobile internet plan, anticipate encountering a novel label that meticulously outlines what you can anticipate paying, the typical download speeds, and pertinent information regarding the internet provider’s policies.
According to the Federal Communications Commission (FCC), this information will now be standardized across providers and presented in a novel disclosure fashioned after the nutrition labels commonly found on food packaging in grocery stores.
These new labels, commencing Wednesday and mandated for display by all major internet service providers (ISPs), represent the latest governmental effort in the United States to assist consumers in arranging the array of plans, fees, and promotional rates prevalent in today’s market.
FCC and White House officials assert that the transparency afforded by these labels could facilitate cost savings for Americans.
Alejandro Roark, the FCC’s bureau chief for consumer and government affairs, elucidated,
“The FCC borrowed the nutrition label model format from food products because we wanted to make basic information about broadband internet service easily recognizable and easy to understand.”
Dubbed as “consumer broadband labels,” these FCC-mandated disclosures must be furnished at the point of sale, both online and in stores, often in both English and Spanish.
They are mandated to include details concerning early termination fees, data caps, and network practices such as speed throttling.
Importantly, they must be readily accessible, prohibited from being obscured in fine print or relegated to separate web pages.
Despite these initiatives, challenges persist. Millions of Americans still face limited options for internet providers, with many lacking access to high-speed internet altogether, particularly in rural and tribal areas.
Furthermore, the impending end of a federal aid program threatens millions of households with the loss of internet access due to financial constraints.
However, these disclosures represent a step towards enhancing competition among internet providers, aligned with the broader Biden administration agenda to combat misleading business practices.
The labels, which have been years in development, aim to simplify the comparison of plans and offerings from providers such as Comcast, Verizon, and AT&T.
Moreover, as the labels must be machine-readable, they hold promise for facilitating data gathering by researchers and product review sites.
FCC officials pledge vigilant monitoring for compliance and readiness to address any issues arising from non-compliance.
