ISPs’ long nightmare of having to list all the fees they charge is finally over
The US Federal Communications Commission has voted to scrap a Biden-era requirement that internet service providers itemise every "passthrough" fee on their broadband price labels. The rule, introduced in 2023, was meant to stop bill shock by making ISPs list all discretionary monthly charges they pass on to customers, helping consumers compare prices accurately. Providers had lobbied against the itemisation requirement, arguing it was burdensome, and the change means they can once again advertise headline prices that understate what customers will actually pay.
Under the new rules, proposed by FCC Chairman Brendan Carr, ISPs can display an aggregate "up to" figure for passthrough fees rather than listing each one separately, and may link to price labels instead of showing them prominently on ordering pages and account portals. The Commission voted 3-0 to approve the change, with Democratic commissioner Anna Gomez joining the Republican majority after securing a compromise: labels must still describe fees remitted to state and local governments and those paid to third parties, with a link to further detail on each fee type, such as E911 or pole attachment charges. Gomez said she would have preferred full itemisation, but welcomed the added descriptions; the order takes effect 30 days after publication in the Federal Register.
In short
- FCC scraps rule forcing ISPs to itemise all passthrough fees on price labels
- ISPs can now show one aggregate "up to" fee total instead
- Commissioner Gomez secured compromise adding fee descriptions and links
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Consumers cannot make informed price comparisons without seeing all charges upfront on the price label itself. An aggregate 'up to' figure allows ISPs to advertise headline prices that understate true costs, recreating the bill shock the original rule aimed to prevent. Full itemisation of discretionary passthrough fees is essential for market competition to function fairly and protects consumers, particularly less sophisticated ones, from deceptive pricing practices.
The case against
Itemisation requirements impose genuine compliance burdens on ISPs without proportionate consumer benefit, since an aggregate 'up to' figure combined with accessible linked information achieves transparency adequately. Many of these fees are government-mandated or third-party charges beyond ISP control, making detailed itemisation less meaningful. A more flexible approach reduces unnecessary regulatory costs that may ultimately be passed to consumers whilst still providing the price information needed for informed choice.
Explained simply
Internet service providers in America charge customers extra fees alongside their main broadband charges—things like regulatory fees, administrative costs, and charges passed on from third parties. In 2023, the Federal Communications Commission introduced a rule requiring these "passthrough" fees to be listed separately on price labels, so customers could see the full cost before agreeing to buy. The rule aimed to prevent bill shock and help people compare prices between different providers.
The FCC has voted to change this requirement. Internet providers had complained that itemising each fee was burdensome. Under the new rules, companies can instead show a combined total for all passthrough fees or link to a document with details, rather than displaying each fee clearly at the point of purchase.
The change means customers will see lower advertised prices that don't include all charges, making the full cost less obvious before purchase. This could make it harder for people to compare what different providers actually charge. The itemisation rule had been specifically designed to address this problem.