The Federal Communications Commission has voted unanimously on a proposed regime for implementing Congress's mandate that internet-service providers tell their customers up front about the service those customers are buying via point-of-sale labels, and one commissioner used the agency’s January public meeting to call for Big Tech to be held to the same standard.

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 Notice of Proposed Rulemaking, 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 item asks a number of questions, including on how to ensure the accuracy of the labels' content and the proper implementation timelines.

Also: FCC Tees Up Broadband Nutrition Labels

Commissioner Geoffrey Starks, a Democrat, said he was pleased to support the item and begin the process of expanding public access to better information on broadband offerings. He said the nutrition labels will help everyday households compare prices and find the best package and deal for them.

Rosenworcel said the labels would help stop unexpected costs and fees in the “fine print.”

And while the 2016 label was voluntary, Congress gave the FCC support for a mandate that would hold ISPs to their promises, which would mean better service and better prices.

Commissioner Brendan Carr, a Republican, supported the item, but wanted to make the point that the FCC already had transparency rules on the books. “The FCC has long worked to promote transparency, including through specific rules,” he said. “Right now, we have rules on the books, for instance, that require broadband providers to publicly disclose accurate information regarding their network management practices, performance characteristics, and commercial terms sufficient to enable consumers, businesses, and entrepreneurs to make informed choices.”

While Carr voted to launch the process mandated by Congress, he suggested that using the 2016 label “could artificially constrain the agency’s ability to make decisions that reflect today’s market for connectivity.”

He also put in a plug for requiring labels from edge providers, which he has been highly critical of.

“[W]hile I am open to ways we can improve the transparency and disclosure rules that apply to broadband providers, I continue to believe that the real black box is in a different portion of the Internet ecosystem — Big Tech,” he said. “Big Tech companies provide far less transparency than broadband providers regarding their practices and commercial terms. In fact, just this week, four state AGs sued Google for misleading consumers about when Google was tracking their location information. I have been clear that I favor — and consumers deserve — greater transparency from these companies. And I have previously called for the FCC and FTC to take action here. The transparency rule that currently applies to broadband providers or even the nutrition label approach we propose here would be a good place to start when it comes to bringing much-needed and long-overdue transparency to Big Tech. This would ensure that all Internet users, from entrepreneurs to small businesses, have the information they need to make informed choices.”

Advocates See a Transparency Tool

“A broadband label is a great tool to increase transparency and help consumers better understand what they are paying for with their internet plan,” said Jonathan Schwantes, senior policy counsel at Consumer Reports. “And for those lucky consumers who enjoy a choice of ISPs, a clear, uniform label will allow those consumers to comparison shop.

“For far too long ISPs have gotten away with confusing information about the internet service they provide, hidden data caps, and bills that vary by ISPs filled with a laundry list of mysterious fees buried in the fine print. The label is a critical step in shedding more light on these practices, and will help consumers better understand what has become the essential service of the early 21st century.”

“Today’s FCC vote is a welcome step forward and a win for consumers,” Joshua Stager, deputy director for broadband and competition policy for New America‘s Open Technology Institute, said. "OTI has long called for truth-in-billing for the broadband industry, which is notorious for keeping customers in the dark. Hidden fees, surprise bills, and dense contracts are familiar problems to anyone who deals with these companies.

“The broadband nutrition label cuts through this confusion by clearly disclosing the cost and terms of service in a simple, consumer-friendly format.” 

As if there were any doubt, Google and its policy allies will continue to push their vision for Smart Cities with a focus on education and health applications during the coming years. Rural plus small-town deployment will remain a centerpiece of their political efforts.

At a Next Century Cities (NCC) program in Washington on Wednesday morning (Nov. 30), bipartisan speakers extolled broadband's value and some, such as Sen. Amy Klobuchar (D-Minn.), a member of the Senate Commerce and Judiciary committees, indicated plans to keep their agenda alive no matter what policy barriers lie ahead.

"Transforming Communities: Broadband Goals for 2017 and Beyond," the title of the event, was sponsored by Google Fiber, the Ford Foundation, Internet2 and Harrison Edwards (a Westchester, N.Y., public relations firm that represents many non-profit/educational institutions). The program (watch a video) was held at Google's Washington office.

In prepared remarks Klobuchar said, “Everyone, from the farmers in rural Minnesota to those in our towns and cities, must be able to log on and participate in this new digital economy.”

Sen. Angus King (I-Maine), a member of the Rules and Budget committees, described high-speed broadband's capability to enable people "whether they live in rural Maine or New York City, to realize unprecedented economic, educational and cultural opportunities."

"That’s why today’s event, which brought together a bipartisan coalition of voices to champion how broadband can transform our communities, is so vitally important," King said in prepared remarks.

Sen. John Boozman (R-Ark.), who sits on the Senate Appropriations and Rules committees, observed: "Broadband is a vital component to our nation’s 21st century infrastructure and our federal policies must reflect this. Right now, a digital divide exists between rural and metropolitan areas which we must overcome.”

The Schools, Health & Libraries Broadband (SHLB) Coalition and US Ignite, which supports next-generation Internet applications, co-hosted the event. Other speakers included several mayors, school and library administrators plus familiar broadband cheerleaders such as Harvard Law professor Susan Crawford; Gigi Sohn, the outgoing counselor to FCC chairman Tom Wheeler; and Brookings Institute senior fellow Blair Levin.

The NCC characterized its event as a way to examine "key policy goals and needs for the next administration, and the program also included demonstrations of "innovative civic applications enabled through gigabit technology."

Counting 150 cities among its membership, the NCC characterizes itself with a Google-friendly description as an organization that "recognize[s] the importance of leveraging gigabit-level Internet to attract new businesses and create jobs, improve health care and education, and connect residents to new opportunities."

NCC executive director Deb Socia summarized the event's objective as a way to examine "how all levels of government can work together to continue broadband efforts in communities nationwide and build on these transformative achievements.”

The underlying message of this NCC initiative, which notably did not include cable organizations, is that the broadband battle will continue, with powerful forces continuing to seek dominant roles. Wednesday's event was one in a long series of think-tank and astroturf lobbying programs in Washington during the coming weeks as soothsayers imagine what the next Congress and Administration will wreak.