{"id":36354,"date":"2023-11-21T23:50:55","date_gmt":"2023-11-21T23:50:55","guid":{"rendered":"https:\/\/isafespend.com\/news\/biden-proposes-ban-on-cable-cord-cutting-fees\/"},"modified":"2023-11-21T23:50:56","modified_gmt":"2023-11-21T23:50:56","slug":"biden-proposes-ban-on-cable-cord-cutting-fees","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=36354","title":{"rendered":"Biden proposes ban on cable cord cutting fees"},"content":{"rendered":"
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WASHINGTON \u2014 The Federal Communications Commission on Tuesday announced a rule proposal to ban early termination fees for cable and satellite service contracts.<\/p>\n

The proposed rule would require cable operators and direct broadcast satellite (DBS) providers to eliminate early cancellation fees. It would also require cable and DBS companies to provide customers a prorated credit or rebate for the remaining days within a billing cycle after cancelation, according to an FCC release.<\/p>\n

“No one wants to pay junk fees for something they don’t want or can’t use,” FCC Chairwoman Jessica Rosenworcel said in a statement. “When companies charge customers early termination fees, it limits their freedom to choose the service they want.”<\/p>\n

The proposed rule is part of the White House’s larger focus on eliminating surplus fees under President Joe Biden’s July 2021 executive order to promote competition in the U.S. economy. <\/p>\n

According to that order, cable television is one sector where fees can stifle competition, due to costs associated with canceling services or switching service providers.<\/p>\n

“Companies shouldn’t lock you into services you don’t want with large fees,” President Joe Biden said via X<\/a> on Tuesday. “It’s unfair, raises costs, and stifles competition. We’re doing something about it.”<\/p>\n

The FCC had previously announced it would implement Broadband Consumer Labels \u2014 easily accessible information for consumers about the functions and costs of a broadband service that mimics a food nutrition label. The agency has also proposed ‘all-in-pricing’ for cable and satellite services, so that customers will see the total service costs, fees included, up front.<\/p>\n

“In an increasingly competitive media market, we should make it easier for Americans to use their purchasing power to promote innovation and expand competition within the industry,” Rosenworcel said.<\/p>\n<\/div>\n<\/div>\n