Biden Administration Takes ‘Major Step’ To Help Americans From ‘Getting Ripped Off’

Biden Administration Takes ‘Major Step’ To Help Americans From ‘Getting Ripped Off’

President Joe Biden has announced his Administration has taken a "major step" to help Americans from "getting ripped off" by Internet companies.

Hidden fees and unexpected rate hikes from major internet providers, including Spectrum, Verizon, and Xfinity, have affected millions of Americans for years, but, in the words of the current POTUS, that ends now.

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Biden Administration Declares Internet Providers Must Be Transparent About Fees

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New rules adopted by the Federal Communications Commission are now forcing internet providers to utilize a system much like nutritional labels on food products to detail precisely what is included in the package.

“If you’ve ever shopped for home or mobile internet, you can understand how hard it can be to understand what you’re actually paying for,” Jon Donenberg, Deputy Director of the White House National Economic Council, said on a call with reporters, per ABC. "The broadband nutrition label is a tool that can help consumers make sure they have a clear, straightforward explanation of home and mobile services before signing up for anything.”

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The new labels will be similar to FDA food labels and will provide transparent and accurate details about the cost of your high-speed internet service. This will allow consumers to avoid hidden fees, price hikes, and other unexpected costs.

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Joe Biden Administration Requiring Big Internet Providers To Use New Labels

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President Joe Biden announced his "Administration is requiring big internet providers to tell you exactly what you’re paying – and what you’re getting – when you purchase your plan."

Joe Biden further explained that the new requirements will eliminate hidden fees and "bait-and-switch tactics."

The Washington Post states, "The FCC has authority to impose monetary penalties on companies under Section 503 of the Communications Act, and it has periodically invoked this power against major internet service providers."

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In 2015, the FCC fined AT&T $100 million after the company was accused of "improperly slowing internet speeds for customers after they used a certain amount of data despite advertising the plans as 'unlimited.'"

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New Labels 'Cannot Be Buried'

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According to a spokesperson for the FCC, these new labels “cannot be buried in multiple clicks” or hidden in any way. “Fees can make it hard to understand the true cost of an internet plan," Donenberg said, adding that the agency is “committed to rooting out surprise junk fees that some companies pile on to your bills.”

According to the most information released at this time, labels must include:

  1. Monthly price and contract length
  2. Whether that price will change after a certain period and what it will change to
  3. Complete list of monthly and one-time fees, and early termination fee
  4. Whether the company participates in the Affordable Connectivity Program and link to check if one qualifies
  5. “Typical” download and upload speeds, and latency
  6. Data cap and price beyond that cap
  7. Links to network management (e.g., zero rating and content blocking) and privacy policies

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Consumers May File A Complaint If The New Label Does Not Meet Requirements

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One of the biggest complaints that customers have had is that companies are not transparent about deals, discounts, or bundles, such as merging services with mobile plans. Now, that changes as available offers must be disclosed, and links must be provided.

Customers can file a complaint with the FCC Consumer Complaint Center if an internet provider does not display their labels or if they post inaccurate information about its fees or plans.

Many providers will begin displaying the new labels in April. Those companies with less than 100,000 subscribers will have until October 10, 2024, to comply with the FCC's new rules.

Consumers Thank Joe Biden For The New Requirements

Biden Administration Takes 'Major Step' To Help Americans From 'Getting Ripped Off'MEGA

“The broadband label is a critical step toward establishing a fairer marketplace,” Justin Brookman, director of technology policy at Consumer Reports, said in a statement, per The Washington Post. “Internet providers have long obscured the true cost of the services they provide.”

After the announcement was made, many consumers thanked the President for enforcing these new requirements. "Thank you! This is a huge step towards families being able to afford to eat," one person said.

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One user shared their experience with Charter Spectrum. "The most absurd bill I get every month is from Charter Spectrum," they wrote. "So many add-ons with different service charges. Ridiculous how they rip us off. Every 6 months, they raise the cost of something. It's unsustainable for families who are not wealthy."

Another said, "This is a positive change."