Biden proposes restriction on cable television cord cutting costs

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Biden proposes ban on cable cord cutting fees

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United States President Joe Biden speaks throughout a conference on development to counter the circulation of fentanyl into the United States, in the Roosevelt Room of the White House in Washington, DC, on November 21, 2023.

Andrew Caballero-Reynolds|AFP|Getty Images

WASHINGTON– The Federal Communications Commission on Tuesday revealed a guideline proposition to prohibit early termination costs for cable television and satellite service agreements.

The proposed guideline would need cable television operators and direct broadcast satellite (DBS) service providers to get rid of early cancellation costs. It would likewise need cable television and DBS business to offer consumers a prorated credit or refund for the staying days within a billing cycle after cancelation, according to an FCC release.

“No one wants to pay junk fees for something they don’t want or can’t use,” FCC Chairwoman Jessica Rosenworcel stated in a declaration. “When companies charge customers early termination fees, it limits their freedom to choose the service they want.”

The proposed guideline belongs to the White House’s bigger concentrate on getting rid of surplus costs under President Joe Biden’s July 2021 executive order to promote competitors in the U.S. economy.

According to that order, cable is one sector where costs can suppress competitors, due to expenses connected with canceling services or changing provider.

“Companies shouldn’t lock you into services you don’t want with large fees,” President Joe Biden said via X onTuesday “It’s unfair, raises costs, and stifles competition. We’re doing something about it.”

The FCC had actually formerly revealed it would carry out Broadband Consumer Labels– quickly available info for customers about the functions and expenses of a broadband service that imitates a food nutrition label. The firm has actually likewise proposed ‘all-in-pricing’ for cable television and satellite services, so that consumers will see the overall service expenses, costs consisted of, in advance.

“In an increasingly competitive media market, we should make it easier for Americans to use their purchasing power to promote innovation and expand competition within the industry,” Rosenworcel stated.