The Federal Communications Commission (FCC) has ordered internet service providers (ISP) to be more transparent with their plans and how much they cost, according to Engadget.
The commission has introduced new rules requiring ISPs to include easy-to-read-and-understand labels that show key information about their products during the point of sale.
FCC Says Broadband Labels Will Resemble Nutrition Labels
According to FCC, the labels should look like nutrition labels located at the back of food products. It should include the price, speed, data allowances as well as other aspects of the ISPs wired and wireless internet services.
Chairwoman Jessica Rosenworcel said in a statement that their rules will require broadband nutrition labels to be fully displayed during the time a consumer is making a purchasing decision.
It will help the consumers make an informed decision since they will have a simple, easy-to-read facts about price, speed, data allowances, and other aspects of the internet service.
For all ISPs, the labels must be completely standard and machine-readable. Likewise, it must be displayed on the ISPs' "the main purchasing pages" online.
The commission said that the label should not be buried in multiple clicks or reduced to a link or icon that a consumer would not easily see. Moreover, the label must be easily available on request after a consumer signs up.
According to TechCrunch, the label should include the monthly price and contract length, the typical" download and upload speeds, and latency as well as information if that price will change some time and what it will change to.
Likewise, the complete list of monthly and one-time fees, and early termination fee should also be included.
There must also be information if the company participates in the Affordable Connectivity Program.
Moreover, there must information on data cap and price beyond that cap as well as links to network management and privacy policies.
If the said information will be posted clearly following the same format between providers, anyone can check on these labels and easily decide which one is right for them. Consumers will not be deceived by flashy advertising or a misleading promo price.
Read Also: FCC Estimates $5.6 Billion Costs to 'Rip and Replace' Huawei, ZTE, Other Chinese Equipment
ISPs Will Have Six Months to Comply With FCC's New Rules
The rules for broadband labels were proposed by the commission back in January. It is made in response to the Infrastructure Investment and Jobs Act that President Biden signed into law in 2021.
However, it'll take some time before the rules were enacted. According to an FCC spokesperson, the rules must first be reviewed by the Office of Management and Budget.
After the rules were reviewed, they will be published in the federal register. Then, the ISPs will have six months to comply, or a year if they're a smaller company.
Over time, the labels may change slightly just like nutrition labels have. It is expected that more and better information will be included in the labels depending on the feedback from the customers and the industry.
According to Rosenworcel, the agency seeks to ask how to incorporate more pricing and discount data on the label itself as well as how to measure service reliability. They are after making the broadband nutrition labels even more accessible.
Related Article: FCC Commissioner Wants TikTok Removed From App Stores Due to National Security Concerns
