Shopping for broadband internet will look a lot like a trip to the grocery store.
Starting Wednesday, internet companies will be required to stick broadband “nutrition labels” disclosing important information like prices, introductory rates, and speeds on their products, thanks to a new mandate by the Federal Communications Commission. This information must be made available to consumers both online and in stores.
The labels, modeled after the Food and Drug Administration’s nutrition facts labels found on food products, are designed to help consumers comparison shop for the right internet service plan — and stop companies from sneaking in hidden fees.
Although the label’s design was first unveiled in 2016, the FCC has been looking to make the labels a required standard for internet service providers (ISPs) for eight years now. At the time, then-FCC Chairman Tom Wheeler said the labels would “provide consumers clarity about the broadband service they are purchasing, not only helping them to make more informed choices but also preventing surprises when the first bill arrives.”
Six years after the initial release of the labels, the FCC finally rolled out a mandate in 2022 requiring broadband providers to display easy-to-understand labels on their products. And now, two years later, the labels will finally be visible to consumers.
“Consumers deserve to get accurate information about price, speed, data allowances, and other terms of service up front,” FCC Chairwoman Jessica Rosenworcel said in 2022.
Verizon, Google Fiber, and T-Mobile have already begun using the labels ahead of the deadline. Providers with less than 100,000 subscribers, however, have until Oct. 10, to comply with the FCC’s new rules.
The Biden administration has launched a crackdown on sneaky fees that often cost consumers. In October, the White House announced a new proposed rule to prohibit junk fees — hidden and misleading fees — and require companies to show full prices upfront. The Federal Trade Commission estimates that junk fees cost American consumers tens of billions of dollars each year in unexpected costs.