Luján Leads Colleagues in Letter to FCC Urging Pricing Transparency from Internet Service Providers

Washington D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.) led four of his Senate colleagues in a letter commending the Federal Communications Commission (FCC) and Chairwoman Jessica Rosenworcel for the Commission’s decision to require internet service providers (ISPs) to provide easy-to-read essential pricing information labels to consumers. The letter also urged the Commission to collect and verify pricing information to further protect consumers from waste, fraud, and abuse.  

The lawmakers wrote, “We write to you regarding the implementation of the Infrastructure Investment and Jobs Act (IIJA), which makes historic investments in broadband infrastructure, broadband affordability, and digital equity to ensure every American has access to affordable, resilient, and secure high-speed broadband. The FCC will play a key role in making this goal a reality by requiring ISPs display consumer labels showing essential pricing information so that consumers can make informed choices when purchasing internet plans.”

“In order to best support this, we urge the Commission to independently collect data on pricing information—including monthly fees, one-time fees, and promotional rates—in order to verify and audit the information ISPs include in the broadband labels mandated by the legislation. Pricing data is critical to ensure that the broadband market is competitive and affordable,” the lawmakers continued.

Additional signers of the letter include U.S. Senators Amy Klobuchar (D-Minn.), Tammy Duckworth (D-I.L.), Tammy Baldwin (D-W.I.), and Cory Booker (D-N.J.).

The full text of the letter can be found HERE and below.

Dear Chairwoman Rosenworcel:

We write to you regarding the implementation of the Infrastructure Investment and Jobs Act (IIJA), which makes historic investments in broadband infrastructure, broadband affordability, and digital equity to ensure every American has access to affordable, resilient, and secure highspeed broadband. Under the law, the Federal Communications Commission (FCC or Commission) will play a key role in making this goal a reality by requiring Internet Service Providers (ISPs) display consumer labels showing essential pricing information so that consumers can make informed choices when purchasing internet plans. In order to best support this, we urge the Commission to independently collect data on pricing information—including monthly fees, one-time fees, and promotional rates—in order to verify and audit the information ISPs include in the broadband labels mandated by the legislation. This is especially pressing given the FCC’s recent Notice of Proposed Rulemaking on this issue. We know this is an important issue for you, and the discussion at Thursday’s meeting was an important step forward on these issues.

Pricing data is critical to ensure that the broadband market is competitive and affordable. Americans living in rural and low-income neighborhoods reportedly pay the same for broadband as Americans living in wealthier enclaves, yet receive slower broadband speeds. Worse, many Americans have no options. 88 million Americans have only one choice for a broadband provider, so they are forced to pay for sub-par speed with no options. Without accurate and comprehensive pricing data, the scope of this problem will remain hidden, and the country’s most vulnerable consumers will continue to pay the highest prices for the slowest service. This is significant since high cost also remains one of the chief reasons cited for not having a home broadband subscription. Increasing broadband affordability is a critical part of closing the digital divide.

Congress acted to protect American consumers who faced a complex web of hidden costs such as equipment fees and activation charges. The IIJA explicitly requires the FCC to adopt “Open Internet Broadband Consumer Labels” as described in a rule initially proposed and unanimously supported by industry and consumer interests of the Commission’s Consumer Advisory Committee (CAC). This rule now requires ISPs disclose to consumers information regarding broadband internet access service plans, including plan pricing. The Broadband Consumer Label is a safe-harbor format for displaying this information in a consistent, simple-to-understand structure that would enable consumers to compare services of different broadband providers.

In addition to the Broadband Consumer Labels, Congress required that the Commission issue rules regarding annual collection of price and subscription rates for providers participating in the Affordable Connectivity Program. Transparent pricing data is important for protecting consumers. As the FCC Office of Inspector General noted in its most recent semi-annual report to Congress, the Commission should ensure that any new regulations implementing programs newly authorized by Congress should “guard against fraud, waste and abuse.” The Commission’s independent collection of pricing data is critical to preventing these types of abuses.

We also recognize that the Commission already made concrete progress towards turning these requirements into realities for consumers. With its recent Notice of Proposed Rulemaking on consumer labels, the FCC started considering important questions, such as whether the rule initially proposed by the Commission’s Consumer Advisory Committee should be updated, how the Commission can ensure the accuracy of the information in the labels, and how the labels can be designed to be as accessible as possible to consumers. Following the Commission’s January Open Meeting, we now encourage the Commission to further explore how to ensure the data ISPs provide to consumers is accurate and reliable.

Establishing accurate and detailed consumer labels and increasing the FCC’s collection of pricing data will not only help inform Congress and the FCC going forward, but will empower consumers to demand better service and fair prices. With the passage of IIJA, we have an opportunity to build equitable broadband infrastructure for all Americans. Such equity, however, requires transparency and competition in both high density and rural markets. It is critical that the Commission hold ISPs accountable on both fronts.

We look forward to working with you on this important matter as you continue to make progress in this area.

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