Article 6GTAB FCC To Vote On New Rules Cracking Down On Shitty Cable TV Fees

FCC To Vote On New Rules Cracking Down On Shitty Cable TV Fees

by
Karl Bode
from Techdirt on (#6GTAB)
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For decades, cable TV giants have nickel-and-dimed customers with a rotating assortment of bullshit cable TV fees, whether it's regulatory recovery" fee (a misleadingly named fee designed to have you blaming government for industry greed), regional sports fees (charged whether or not you watch sports), or the completely meaningless broadcast TV fee" (which has ballooned at several times the rate of inflation).

All of the fees are designed to let the company falsely advertise one price, then sock you with a higher rate when the bill comes due. And now that it has a functional voting majority for the first time in several years, the FCC says it's looking to vote on new rules in December that could put a damper on the industry's abuse of at least one type of fee. Maybe.

The agency's breakdown of its proposed plan suggests the proposal will primarily focus on early termination fees," charged when users prematurely cancel service while under contract, and billing cycles fees" requiring customers pay for a complete billing cycle even if they cancel service before the end of the cycle.

No one wants to pay junk fees for something they don't want or can't use. When companies
charge customers early termination fees, it limits their freedom to choose the service they want," FCC Chairwoman Rosenworcel said in a statement. 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."

Details will matter. As will consistent enforcement (not really the FCC's strong suit).

Early cancellation fees are also only one small part of a much larger ecosystem of bullshit fees. Including the mandatory rental of a cable box. A2019 Consumer Reportsstudy found that about 24% of consumer bills are comprised of bullshit fees, generating cable giants $28 billion in additional revenue annually. Efforts to protect consumers from these fees has been inconsistent and selective at best.

So while it's nice to hear the FCC say all the right things about obnoxious fees, and tackle a genuine issue of annoyance (early cancellation fees), the actual scope of the rules - and whether they're consistently enforced - will matter.

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