Understanding your broadband speeds could be as simple as reading the nutrition label on the back of food you buy at the grocery store as early as the end of this year.
The Federal Communications Commission voted unanimously Thursday to push through a new plan that would require internet providers like Comcast and Verizon to offer new labels that reveal an internet plan’s price, speed and data allowances, including introductory fees and subsequent price increases, as well as network management practices, such as throttling, at the point of sale. This allows for more transparency in market rates and could lead to lower prices in the future.
“Access to accurate and easy-to-understand information about broadband Internet access services helps consumers make informed decisions and is critical to a well-functioning marketplace,” the FCC said in a press release Thursday.
Last summer, President Biden signed an executive order to promote competition in all markets, including telecommunications and Internet services. The order required the FCC to institute new rules intended to provide Internet subscribers with more choice and better broadband Internet service. The agency acted on this order on Thursday, starting a comment process before the rules go into effect on November 15.
“The ‘nutrition labels’ we are seeking feedback on today will help households compare prices and service offerings, making it easier for them to find the right package and the best deal,” Democratic Commissioner Geoffrey Starks said in a statement Thursday. “Providing consumers with better information will also promote more innovation, more competition and lower prices for broadband, benefits for the entire broadband ecosystem.”
Broadband “nutrition labels” are not a new idea. The labels were first introduced during the last year of the Obama administration, but failed to take off under Trump. For years, consumers have complained about sudden price increases and surprise fees, and these labels would force providers to be more transparent about these changes.
The NCTA, a trade group for broadband providers, previously endorsed the concept of labels in 2016. In a statement this week, the organization said: “Cable operators are committed to providing consumers with relevant information about broadband services wide”.
