FCC bans add-on cable and satellite junk fees; everything must be in one price up front

Another group of junk fees is on the chopping block.

The Federal Communications Commission approved new requirements for cable and satellite companies to disclose all costs up front, as a single line item on promotional materials and on bills. 

Too often, companies lie about what a fee is for and add on fees that customers weren’t expecting. The FCC’s goal isn’t to cap fees; it’s just to make sure that companies accurately describe the fees and disclose them up front so consumers can price shop options, including streaming services, and make informed decisions. The move will help consumers and help businesses that have been candid with consumers. 

“TV providers often use deceptive junk fees to hide the real price of their services,” 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 FCC noted that these new rules continue the FCC’s commitment toward forcing companies to be transparent. In a separate move, the Commission has proposed eliminating early termination charges from cable and satellite TV companies. 

This is also part of a movement at the federal level and in some states to eliminate hidden junk fees:

• The Department of Transportation is considering requiring airlines to disclose certain fees at the first point in a consumer’s search process where a fare is provided. The fees include any charged for:
  *  First and second checked bags.
  *  Carry-on bags.
  *  Changes and cancellations, and applicable policies.
  *  Adjacent seating for children age 13 and younger.
• The Consumer Financial Protection Bureau is capping credit card late fees at $8.
• The Federal Trade Commission is considering prohibiting undisclosed junk fees in a range of industries, including for hotels, event tickets, utilities and apartment rentals.