Cable and satellite-TV providers will need to show the total costs for video subscriptions as part of a Federal Communications Commission effort to improve pricing transparency.
In a news release Thursday, the FCC said total costs include extraneous fees that can often unexpectedly accumulate for users. Under new guidelines, consumers will have the ability to compare provider and programming costs with other competitors like streaming services.
“Charges and fees for video programming provided by cable and DBS (direct broadcast satellite) providers are often obscured in misleading promotional materials and bills, which causes significant and costly confusion for consumers,” the FCC stated. “This updated “all-in” pricing format allows consumers to make informed choices.”
Under the new mandates cable and satellite companies must clearly state all the costs as a single line item, the FCC said. Fees like regional sports programming or broadcast retransmission consent can no longer be obscured.
FCC plans to end cable early termination fees
The FCC the latest mandates are just the latest example of the group is working to combat junk fees and improve transparency.
The commission is preparing to launch mandatory “Broadband Consumer Labels,” easy-to-understand information regarding the cost and performance of internet services, and end company early termination fees.
Users often pay an extra $37 to the average monthly bill when watching regional sports, broadcast TV or using set-top box rentals, a 2023 Consumer Reports and Public Knowledge report showed.
The NCTA, the Internet & Television Association pushed against the ruling in March 6 report that said it would be difficult to offer an upfront number when regional fees vary by location.
“NCTA explained that a requirement to disclose the post-promotional rate would be impractical, if not impossible, to comply with and would result in confusing, overly complicated ads,” the report said.
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
