FCC’s Broadband Disclosure Labels Empower Consumers

Today, the Federal Communications Commission (FCC) debuted new Consumer Broadband Labels designed to help consumers shopping for fixed and mobile Internet service plans. These “nutrition fact” labels, created as part of the 2015 Open Internet Order’s transparency measures, include comprehensive pricing terms, caps, speeds, and network practices per service offering.

New America’s Open Technology Institute (OTI) was first to suggest “Truth-in-Labeling” consumer disclosures for Internet offerings in 2009. Last fall, OTI released an updated policy proposal that included a suggested format. These recommendations served as a key progenitor for the FCC’s official labels. OTI also served on the FCC Consumer Advisory Committee task force that developed a standardized disclosure format.

OTI believes these FCC labels will empower consumers shopping for Internet service by allowing them to quickly glean the key facts about a given plan, and easily compare various plan options. In turn, this may ultimately spur more competition and innovation in the home Internet market.

The following statement can be attributed to Sarah Morris, Senior Counsel and Director of Open Internet Policy at New America’s Open Technology Institute:

“The safe-harbor disclosure labels unveiled today will go a long way in helping to standardize descriptions of Internet service offerings. Consumers now have an alternative to the jumble of formats, vague descriptive terms, and otherwise piecemeal disclosures that have been characteristic of the broadband marketplace. By centralizing disclosures in an easy-to-read, consistent format at the point of sale, consumers can compare “apples to apples” and make better informed decisions about the vital service that they will use every day. We applaud the FCC for taking this important step toward more robust broadband transparency.”

The following statement may be attributed to Emily Hong, Policy Program Associate at New America’s Open Technology Institute:

“Confusing and misleading terms of contract have long plagued consumers trying to choose an Internet service provider. The FCC’s transparency rules–including the new labels–are a boon to consumers. By clearly providing price and performance information at or before point of sale, the new labels will empower consumers to pick and choose plans that fit their specific Internet needs and budget.”