Yesterday, the Federal Communications Commission approved a set of proposed rules requiring satellite and cable TV providers to explicitly identify all charges, including fees, for their TV services as advertised.
This means that cable TV companies will no longer be able to hide the cost of cable TV by charging fees such as broadcast TV fees, HD technology fees, and so on.
The rules aim to eliminate what the FCC considers a “misleading practice” of labeling such costs as a tax, fee, or surcharge. The new pricing format requires that all expenses and levies be clearly displayed so that customers can make an informed decision when selecting a plan or signing up for a special offer. The rules aim to decrease client misunderstanding while enhancing competition among suppliers.
The guidelines, originally suggested by FCC Chairwoman Jessica Rosenworcel in March, will also help consumers compare plans with competitors, including streaming services.
“Working families deserve and expect transparency, but cable or satellite TV providers too often hide the real price of their service behind deceptive junk fees,” Rosenworcel said in a statement. “We’re putting an end to this form of price masking.”
These guidelines will take some time to go into effect now that they have been passed. However, cable TV firms are likely to sue to stop this new rule. Some corporations have already labeled the new rule misguided.
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