News

Sep 19, 2023

FCC's "Nutrition Label for Broadband" Falls Short of Transparency

The Federal Communications Commission (FCC) has been attempting to enforce regulations that require broadband Internet Service Providers (ISPs) to provide more accurate information about fees and

The Federal Communications Commission (FCC) has been attempting to enforce regulations that require broadband Internet Service Providers (ISPs) to provide more accurate information about fees and limitations to consumers. The proposed solution was to introduce a “nutrition label for broadband” that would outline key details such as actual speeds, data caps, and additional charges. However, in practice, the FCC has struggled to implement this plan due to various obstacles.

During the Trump administration, the FCC faced criticism for its close alignment with industry interests and lack of effective regulation. Nevertheless, the recent infrastructure bill compelled the FCC to take action, albeit to a limited degree. Big ISPs like Comcast are already finding ways to circumvent the partially implemented restrictions. At an industry event, broadband activists expressed disappointment that the FCC’s labels fail to address misleading pricing, promotional limitations, or actual speeds. Furthermore, the FCC’s program does not require the label to be displayed on subscriber bills.

As a result, the proposed “nutrition” label lacks transparency and usefulness, potentially remaining hidden from consumers. This tendency for inadequate action aligns with the FCC’s pattern of engaging in regulatory theater. The agency often prioritizes “transparency” measures over directly addressing the root causes of America’s spotty and costly broadband, namely the concentration of telecom monopolies and associated corruption.

Rather than collecting and sharing detailed broadband pricing data, which would expose market failures and limited competition, the FCC chooses to ignore the issue. The lack of data collection concerning discriminatory pricing in the industry is to the detriment of consumers. According to Sascha Meinrath, a telecommunications expert, the FCC’s refusal to act against predatory practices exemplifies “American corruption.”

To genuinely address high consumer prices and improve broadband access, the FCC should actively track and document pricing information. They should also promote pro-competitive policies, such as advocating for community-owned broadband networks that offer better, faster, and more affordable service. However, due to the lack of outspoken critics of telecom monopolies within the FCC, such changes are unlikely.

Instead, the FCC relies on symbolic policies that create the illusion of consumer protection, such as addressing the “digital divide” or introducing nutrition labels that fall short of informing consumers. Consequently, broadband in the United States continues to underperform while being disproportionately expensive compared to other developed countries.