The Federal Communications Commission (FCC) has approved a new rule mandating that cable and satellite television providers disclose programming-related surcharges and fees to customers in advertised prices.
Under the measure, traditional pay TV providers regulated by the FCC must reveal the total cost consumers will pay to subscribe to a programming package, including any broadcast and regional sports fees that were typically undisclosed until after purchase. FCC Chairperson Jessica Rosenworcel emphasized the importance of transparent pricing, stating, “No one likes surprises on their bill — the advertised price for a service should be the price you pay when your bill arrives.”
However, cable and satellite TV groups opposed the proposal, expressing concerns about consumer confusion and potential cost increases. The NCTA, representing major cable operators like Comcast and Charter, highlighted the variability of broadcast and regional sports fees across different locations. This variation makes it challenging to include precise fees in nationally-advertised prices, as some customers may receive more channels of these types than others. Additionally, calculating location-specific prices for each customer would pose technological challenges.
In response to the FCC’s proposal, cable and satellite groups, such as the NCTA, expressed concerns about the practicality and potential consequences of implementing geo-targeted pricing to accommodate varying fees by location. They argued that such an approach would be technically challenging, costly, and intrusive, representing an unnecessary government intervention in lawful marketing strategies.
These groups cautioned that efforts to enforce all-in pricing could lead to increased marketing costs and ultimately drive up the overall cost of service for consumers. They pointed out that customers in areas with fewer broadcast and regional sports channels might end up paying the same price as those in regions with more channels of this type.
However, consumer advocacy groups dismissed these concerns as exaggerated, arguing that cable and satellite providers have the ability to reduce hidden fees that inflate customers’ bills. Consumer Reports highlighted how fees for broadcast, sports, and equipment had been rolled into base programming prices in the past, resulting in significant savings for consumers. Jonathan Schwantes, senior policy counsel for Consumer Reports, emphasized that these additional fees could add up to $37 per month for consumers, representing a substantial surcharge on top of the base price.
Despite pushback from cable and satellite companies, the FCC sided with consumer advocacy groups, asserting that the practice of imposing “junk fees” on customer bills needed to come to an end.