FCC Floats Ban on Cable TV 'Junk Fees' That Make It Hard To Ditch Contracts (arstechnica.com) 32
The Federal Communications Commission has taken a step toward prohibiting early termination fees charged by cable and satellite TV providers. From a report: If given final approval, the FCC action would also require cable and satellite providers to provide a prorated credit or rebate to customers who cancel before a billing period ends. The new rules are being floated in a Notice of Proposed Rulemaking (NPRM) that the FCC voted to approve this week in a 3-2 vote, with both Republicans dissenting. The NPRM seeks public comment on the proposed rules and could lead to a final vote in a few months or so.
"Today's action proposes to adopt customer service protections that prohibit cable operators and DBS (Direct Broadcast Satellite) providers from imposing a fee for the early termination of a cable or DBS video service contract," the FCC said. "Additionally, the NPRM recommends the adoption of customer service protections to require cable and DBS providers to grant subscribers a prorated credit or rebate for the remaining whole days in a monthly or periodic billing cycle after the subscriber cancels service."
FCC Chairwoman Jessica Rosenworcel said, "Consumers are tired of these junk fees. They now have more choices when it comes to video content. But these friction-filled tactics to keep us subscribing to our current providers are aggravating and unfair. So today we kick off a rulemaking to put an end to these practices." Cable lobby group NCTA-The Internet & Television Association opposes the plan and said it will submit comments to support "consumer choice and competitive parity."
"Today's action proposes to adopt customer service protections that prohibit cable operators and DBS (Direct Broadcast Satellite) providers from imposing a fee for the early termination of a cable or DBS video service contract," the FCC said. "Additionally, the NPRM recommends the adoption of customer service protections to require cable and DBS providers to grant subscribers a prorated credit or rebate for the remaining whole days in a monthly or periodic billing cycle after the subscriber cancels service."
FCC Chairwoman Jessica Rosenworcel said, "Consumers are tired of these junk fees. They now have more choices when it comes to video content. But these friction-filled tactics to keep us subscribing to our current providers are aggravating and unfair. So today we kick off a rulemaking to put an end to these practices." Cable lobby group NCTA-The Internet & Television Association opposes the plan and said it will submit comments to support "consumer choice and competitive parity."
Oh no (Score:2)
Won't someone think of the cable company executives??
Re: Oh no (Score:2)
Bullshit clickbait (Score:3, Insightful)
Won't someone think of the cable company executives??
"could lead to a final vote in a few months or so."
You could get back to me a few or so flux capacitation moments from now, and we'll see if this amounts to clickbait bullshit, or clickbait bullshit.
Re:Oh no (Score:5, Insightful)
Won't someone think of the cable company executives??
Apparently the two Republicans on the commission are thinking of them.
Re: (Score:2)
Yes, we do. Personally I struggle to try and think less of them.
Re:what about me (Score:2)
So if a cable company agrees to give me a $30 discount if I sign up for a year, with the catch being a fee if I cancel.....
You don't want discounts with repercussions? I doubt cable companies would just get rid of the fee without reducing the discount. I'd prefer to have a larger discount with the potential termination fee...
Re: (Score:2)
Yes. Why should there be "repercussions"? The discount is to get you to buy, period. Do you expect "repercussions" if you buy a shirt on sale, then complain that a button fell off?
So, the FCC is now voiding contracts? (Score:2)
I know for satellite, you sign a contract.
Can the FCC void a legal contract?
Re: (Score:3)
Re:So, the FCC is now voiding contracts? (Score:5, Informative)
Can the FCC void a legal contract?
They can declare the terms of the contract to be illegal. Illegal terms in contracts are unenforceable.
Re: (Score:2)
Personally, I think this WAY oversteps the authority and mandate of the FCC. It seems clearly an FTC matter.
Re: (Score:3)
Do we still have an FTC? They slept for years, then slipped into a coma. I was pretty sure they went ahead and died in 2019.
Re: (Score:2)
Geez... so you really like being screwed by service providers, solely and exclusively to provide bonuses to execs.
What a *sucker*.
Re: (Score:2)
>"Geez... so you really like being screwed by service providers, solely and exclusively to provide bonuses to execs."
How would you read that into my saying the FTC, not the FCC, should be handling it?
Fees unfair; and also (Score:1)
FCC Chairwoman: Cancellation fees are too high! And too many clicks!
Also FCC Chair: Consumers have lots of choices (none of which have long term contracts), demonstrating market competition is solving this problem.
<snark>(For both remaining 60+ year olds who still have cable.)</snark>
Not that I expect the usual "oh noes, big companies bad, I have no influence!" crowd to listen.
Are these ... (Score:5, Insightful)
commecrial volume too (Score:2)
Re: commecrial volume too (Score:1)
Re: (Score:2)
Might as well drop the whole concept. (Score:2)
If you pay monthly and there is no fee for early termination, can it really be called a contract at that point?
Re: Might as well drop the whole concept. (Score:2)
Re: (Score:2)
Yes, insofar that it could also be a commitment from the cableco not to change the package or price for the duration of the contract.
Good luck with that one.
You'll probably either get a month-to-month "contract" with them freely about to price that service as exactly that (kind of like Netflix price increase announcements)...or you'll sign a 12-month+ long commitment which will have some kind of "deposit" that's non-refundable if you quit paying early. And that's only if they need a weasel word to not call it a "termination fee". You're not likely going to be offered the flexibility of month-to-month and fixed price.
Internet Fees (Score:5, Insightful)
Good (Score:1)
Wrong junk fee... (Score:2)
Biden had to throw us a bone (Score:1)
Cut the cord years ago.....no junk fees (Score:2)
Installation fees will make a comeback (Score:1)
So if the companies here can't do the junk fees, they'll work it some other way.
Expect $200-$300 installation fees after this goes into place. Maybe that can be financed over time.
This might be more transparent, but it will likely not be any cheaper.
Add it to the list... (Score:2)
Then they can go after ticket vendors and airlines.