The Federal Communications Commission has rejected most of the requests that it reconsider its online broadband-labeling rules, but did grant a request by ACA Connects that it reconsider its requirement that broadband providers document each instance when they direct a consumer to a label on an alternate sales channel, and to keep that documentation for two years.

That came in an order released Tuesday (August 29).

As ACA Connects, which represents smaller, independent cable providers, suggested in a petition joined by NCTA-the Internet & Television Association, the FCC will clarify that the requirement to document such redirects will be satisfied if: 

1. “The provider establishes the business practices and processes it will follow in distributing the label through alternative sales channels [i.e. in retail stores or phone interactions].”
2. “Retains training materials and related business practice documentation for two years.”
3. Provides such information to the Commission upon request, within 30 days.”

Otherwise, the FCC largely declined to reconsider the rules it came up with for the consumer broadband labels. That means that providers will have to itemize the fees they pass along to consumers. Providers, including ACAC, had wanted the FCC to allow them simply say, “Additional fees may apply.”

FCC chair Jessica Rosenworcel said: “Every consumer needs transparent information when making decisions about what internet service offering makes the most sense for their family or household No one wants to be hit with charges they didn’t ask for or they did not expect. That’s why Broadband Consumer Labels are so important.”

Congress mandated the labels so consumers can better gauge just what kind of broadband service they are getting, including price, speed and quality. The FCC then came up with rules for the program, which they released in a Report and Order. The ACAC/NCTA petition was filed Jan. 17. The rules were passed in November 2022.

The rules will not become effective until the new data collection requirements are vetted and approved by the Office of Management and Budget. Smaller operators — of 100,000 or fewer subscribers — will have an additional 12 months past that OMB approval date to comply.

President Joe Biden’s just-released budget takes a shot at internet service providers in the intro to the document, where the administration talks up the results it says it has already delivered, including under the heading “promoting competition and entrepreneurship.”

Among the actions it says it has taken to “crack down” on “unfair hidden junk fees” are new Federal Communications Commission rules, which go into effect next year, requiring ‘broadband nutrition labels” so consumers can get “key information’ on internet service options.

Also: ISPs Seek Label Clarification

Actually, the FCC has been promoting such voluntary labeling for a half-dozen years and it was Congress that mandated them, though it was indeed at the administration’s prompting as part of its massive infrastructure bill with its billions for broadband buildouts.

The label must be on ISP websites, ads and in other marketing materials and at the point of purchase, but it does not have to be on monthly bills.

The president’s budget, which was submitted to Congress Thursday (March 9), actually adds to that total with $400 million more for the ReConnect program that provides subsidies for rural broadband buildouts, including Tribal lands.

In 2021, the Agriculture Department made $1.15 billion in federal loans and grants available to expand high-speed internet access in rural communities across the country through the ReConnect Program, part of Biden’s Build Back Better agenda. ■

Broadband operators, including those represented by ACA Connects and NCTA–The Internet & Television Association, have asked the Federal Communications Commission to either clarify or reconsider two requirements in their rules implementing consumer broadband labels that they say may not pass legal muster otherwise.

Congress mandated the labels so consumers can better gauge just what kind of broadband service they are getting, including price, speed and quality.

While the label has to be on ISP websites, ads and in other marketing materials, it does not have to be on monthly bills.

In a joint petition for clarification or reconsideration filed with the FCC Tuesday (January 17) the associations said they generally support the adoption of the regulator’s label rules, which are based on the FCC’s 2016 voluntary labels, They do, however, have a bone to pick with two regulations they say “depart“ from that 2016 regime.

Also: FCC Approves Broadband Label Rules

The first is the requirement that operators itemize state and local government fees; the second is the mandate that ISPs “create and retain documentation” regarding “each instance when [a provider] directs a consumer to the label at an alternative sales channel,” i.e. in retail stores or phone interactions.

The associations said the first requirement could cause “significant” confusion for consumers and create unnecessary complexity for providers. They want the FCC to deem them in compliance if they either disclose that there are fees that change subject to state and local government action or, alternatively, if they identify the maximum dollar figure per month that could be passed through to consumers.

The alternative sales channel documentation requirement could represent unnecessary burdens “that risk diverting resources away from assisting customers in gaining helpful information,” NCTA and ACAC told the FCC. The groups want the FCC to clarify just what needs to be documented and that providers need only document how they display the information in those alternate channels, rather than having to document how consumers interacted with it. 

Without both clarifications, they warned, the FCC may be violating various laws including the Administrative Procedure Act, the Paperwork Reduction Act and the Infrastructure Investment and Jobs Act, which created the labeling mandate. ▪️

The Federal Communications Commission has approved rules for implementing the new broadband labels required by Congress.

The commission has been contemplating such a label for several years and came out with a voluntary version in 2016. The use of the label was since mandated in the Biden administration’s infrastructure act, with its billions in broadband subsidies, so the commission is at the task in earnest.

The FCC Report and Order, which is a final decision barring appeal, requires broadband providers to display the service “nutrition labels,” which include prices, speeds, fees, and any data allowances, at the point of sale. That means the actual label — not a link to the label or an icon — must be prominently displayed in proximity to any ads, as well as easily accessible to customers’ online account portals. The information has to be machine-readable.

While the label has to be on ISP web sites, ads and other marketing materials, it does not have to be on monthly bills, which did not please label fan Consumer Reports. "CR hopes the FCC will revisit this ruling and require ISPs to provide a broadband label on every monthly bill," CR said.

The FCC has also signaled it is willing to refine and improve the labels and adopted a Further Notice of Proposed Rulemaking so that stakeholders can weigh in on those.

“By moving forward to implement broadband nutrition labels, the FCC will help empower consumers to make informed choices in today’s highly competitive broadband market," Jonathan Spalter, president of USTelecom-The Broadband Association, said. "Consumers have lots of options when selecting their services and these new labels should be a simple tool to help with comparison shopping.” ▪️

The FCC will stream a second public hearing on consumer labels for broadband service.

The hearing will be April 11 at 1:30 p.m. and will be free to access at that time at fcc.gov/live.

The hearing will feature panels of consumers, academics and experts talking about making sure the labels have the specific info consumers need. The hearing will also include research on how consumers interpret information and make decisions based on that information.

The FCC has been collecting in put from industry and the public on its Notice of Proposed Rulemaking (NPRM) for how to implement the Infrastructure Investment and Jobs Act (Infrastructure Act) mandate that the FCC come up with "simple-to-understand labels that disclose, at the point of sale, accurate information about prices, introductory rates, data allowances, broadband speeds, and management practices..."

Anyone with questions they want to submit in advance of the hearing can e-mail them to BroadbandLabelsHearing@fcc.gov.

The FCC's first public meeting on the labels was March 11.

The FCC since 2016 has allowed ISPs voluntarily to use such so-called nutrition labels as proof that they are adhering to its transparency requirements. But chairwoman Jessica Rosenworcel made clear that the difference now is the label is mandated.

The FCC is proposing to use that 2016 label format, which resembles a food nutrition label, as the mandated one, but asks whether there need to be any changes or additions.

Among the provisions in the Biden administration’s Infrastructure Act — which allocated billions of dollars for broadband, including subsidies for broadband service — was that the FCC mandate the broadband “nutrition label” so consumers can know the speed and quality of service they are getting at what price and with what fees attached.

According to the FCC NPRM, the label has to include “accurate information about prices, introductory rates, data allowances and broadband speeds,” as well as “management practices.” Any ISP that does not hew to the letter of the label could be pursued by the Federal Trade Commission under its authority to prevent “false and deceptive” advertising.

The labels must be accessible to the disabled and must promote equity in the provision of service.

The FCC item asks a number of questions, including on how to ensure the accuracy of the labels' content and the proper implementation timelines. ■