New rules on ‘upfront’ pricing for cable and satellite TV bills
INDIANAPOLIS – The federal government is cracking down on cable and satellite TV companies that jack up their prices with hidden fees.
The Federal Communications Commission adopted new rules requiring cable and satellite TV providers to specify the “all-in” price clearly and prominently for video programming services in their promotional materials and on subscribers’ bills. The FCC aims to eliminate the misleading practice of describing video programming costs as a tax, fee or surcharge.
According to the agency, cable and satellite companies use deceptive junk fees with obscure names to hide their real prices while running ads that don’t include the fees. The new rules will mean consumers will have access to the real total price of their monthly subscription, including all the programming fees, sports packages and other add-ons.
That total will have to be clearly displayed in order to make it easier to compare different companies, including streaming services.
“No one likes surprises on their bill,” said FCC Chair Jessica Rosenworcel. “The advertised price for a service should be the price you pay when your bill arrives. It shouldn’t include a bunch of unexpected junk fees that are separate from the top-line price you were told when you signed up.”
“These new rules require cable operators and direct broadcast satellite (DBS) providers to state the total cost of video programming service clearly and prominently, including broadcast retransmission consent, regional sports programming, and other programming-related fees, as a prominent single line item on subscribers’ bills and in promotional materials,” a statement from the FCC said. “The record demonstrates that 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 vote was met with criticism by NCTA the Internet and Television Association.
“The FCC’s micromanagement of advertising in today’s hyper-competitive marketplace will force operators to either clutter their ads with confusing disclosures or leave pricing information out entirely,” a statement from the association said. “For consumers, it’s a lose-lose proposition.”
The report released by the FCC states that cable and satellite companies have nine months to comply with the new rules, which means the changes should take effect by the start of next year.
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