FCC Now Requires “Nutrition Labeling” on Broadband Deals
Nutrition labels are a great consumer tool that allows us to quickly understand the nutritional benefits of any food before we decide to buy or eat it. The FCC must be a fan because they are now requiring all internet service providers (ISPs) to add their own “nutrition labels” to their services.
Under new FCC rules, ISPs must start labeling their internet packages with “broadband labels,” which look much like the nutrition facts label found on any food product. These new rules come into force today, April 10, and apply to home internet plans as well as mobile broadband plans. (However, if a business has fewer than 100,000 followers, it has until October 10, 2024 to add tags.)
On these labels you will find information such as broadband service prices, starting rates, data amounts for each plan and speeds. You will also find links to additional information about the company’s privacy policies and network governance practices. You’ll also see them whether you buy plans online or in store.
While the goal of these broadband manufacturers is to make it easier for consumers to purchase internet plans, even the FCC understands that many of us don’t understand all the terms associated with providing home or mobile internet. This way, they have a lengthy glossary that consumers can refer to if there is a term they are unfamiliar with. For example, “transit” fees are government fees that companies choose to pass on to you rather than pay themselves, and “typical latency” is the amount of time it takes for information to move from one point to another over the Internet.
You can also view a sample broadband label from the FCC here if you want to know what they look like before you try to purchase internet plans. You’ll see a plan at the top followed by a monthly price in bold. You can see that this example plan has an introductory rate and that the price jumps to $109.99 after 12 months. You’ll instantly know what your rate will be midway through your contract, whereas previously you might have had to find out this information from your ISP.
I think these labels are a great idea: if they help consumers understand what they’re signing up for and potentially help them choose a better plan they didn’t know existed or negotiate a better price, I’m all for it. This may not solve the problem of lack of ISP choice among consumers in the United States , but it should help prevent consumers from giving their ISPs even more money than they already charge.