FCC Moves to Eliminate Transparency for Internet Fees

The Republican-led Federal Communications Commission (FCC) has voted to approve a proposal that could make it even more difficult for consumers to receive detailed itemized billing from their Internet Service Providers (ISPs). This change, originally reported by CNET, aims to roll back the transparency requirements designed to help consumers understand their internet bills.

Changes to Broadband Facts Labels

The proposed changes would diminish the utility of the “Broadband Facts” labels, which consumers typically encounter when evaluating broadband plans. These labels provide a clear breakdown of charges for services, which are now under threat as the FCC seeks to minimize what it deems “unnecessary” informational requirements that may “confuse customers.”

During a notice of proposed rulemaking (NPRM) passed on October 28, all Republican FCC members voted in favor of the change, while the sole Democrat dissented. The decision could pave the way for a future where ISPs are no longer mandated to provide these important transparency labels in phone conversations, customer account portals, or in comprehensive fee breakdowns.

Previous Progress and Current Vote

Initially proposed in 2016 and enacted by the Biden administration in 2024, the labels had required ISPs to disclose every charge associated with their service plans, including previously hidden fees. Critics of the new proposal, like Raza Panjwani from New America’s Open Technology Institute, describe it as a political maneuver intended to undermine the usefulness of these transparency labels, making it easier for ISPs to impose undisclosed charges.

Anna Gomez, the lone Democratic member of the FCC, condemned the proposal as “one of the most anti-consumer items I have seen.” She voiced disappointment that the FCC did not provide an adequate explanation for why the proposal is needed, asking for clarity: “Make it make sense.”

Consumer Preferences

Despite claims from the FCC’s Republican members that consumers find these labels unnecessary, a 2024 study showed an 85 percent satisfaction rate among nearly 5,000 broadband customers regarding the existing transparency measures.

Context of Internet Costs

Consumers in the U.S. are already significantly burdened by higher internet bills compared to many other countries, paying roughly double what customers in Europe and Asia pay for similar services.

As this NPRM moves toward a final vote, many industry observers expect it will pass, given the current commission’s political dynamics. If implemented, this rule would not remove the labels entirely but would significantly complicate their accessibility and utility for everyday consumers.