Cable and satellite TV providers will need to ensure that the total price of a subscription plan is displayed as a “prominent single line item,” including fees described as additional charges, under a rule adopted Thursday by the Federal Communications Commission (FCC). The FCC said the new rules (pdf) on “catch-all” pricing would eliminate “the misleading practice of characterizing the cost of video programming as taxes, fees or surcharges, making it easier for customers to compare prices with competing providers and streaming services.” Compare” “.
“No one likes a surprise with their bill,” FCC Chairman Jessica Rosenworcel said in a separate statement (pdf). “The advertised price for a service should be the price you pay when you get billed. It shouldn’t include a bunch of unexpected junk fees that have nothing to do with the maximum price you were told when you signed up.”
New rules for transparent pricing of video programming will apply to subscriber billing and promotional materials. The FCC said companies frequently conceal certain costs and charges, which “creates serious and costly confusion for consumers.” The committee also recommended eliminating early termination fees charged by cable and satellite television providers.
Forcing companies to display their subscription prices more clearly may come as a relief to consumers tired of unexpected extra costs, but cable providers like Comcast, Cox and Charter argue it’s unnecessary. The Network Television Association (NCTA) called the ruling “misleading” and claimed it would only cause further confusion.
“Cable providers provide clear and accurate pricing information to attract and retain subscribers, including ‘comprehensive’ pricing information before signing up for service,” NCTA said in response to the ruling. “In today’s ultra-competitive market, federal communications The Commission’s micromanagement of advertising will force operators to either clutter their advertising with confusing disclosures or ignore pricing information entirely.”
Reveal: Comcast is an investor in Vox Media, edge‘s parent company.
