FCC Targets Cable TV Junk Fees and Early Termination Fees

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FCC Targets Cable TV Junk Fees and Early Termination Fees

The Federal Communication Commission is targeting junk fees and early termination fees in the cable TV industry a new Notice of Proposed Rulemaking.

Junk fees and early termination fees make switching between providers, or simply ending service, a costly proposition. The FCC voted 3-2 to approve the Notice of Proposed Rulemaking, saying the industry’s fees harm consumers and restrict competition.

TV video service subscribers may terminate service for any number of reasons, including moving, financial hardship, or poor service. Early termination fees require subscribers to pay a fee for terminating a video service contract prior to its expiration date, making it costly for consumers to switch services. Because these fees may have the effect of limiting consumer choice, they may reduce competition for video service. Additionally, billing cycle fees require TV video service subscribers to pay for a complete billing cycle even if the subscriber terminates service prior to the end of that billing cycle. These fees penalize consumers for terminating service by requiring them to pay for services they choose not to receive.

“If you are one of the millions of people in this country who subscribe to cable television or satellite service, one day you might want to end that subscription,” said Chairwoman Jessica Rosenworcel. “You may move, you might want to switch providers, or you might want to check out new competitors offering different kinds of video service. When that happens you will have to contact your cable or satellite provider. If you have ever been on one of those calls you know they are no fun. They take too long. Plus you can get charged early termination fees when all you want to do is shut the service down. On top of that, you can get stuck with paying for weeks of service you do not want just because you cut it off early in the billing cycle.

“Consumers are tired of these junk fees. They now have more choices when it comes to video content. But these friction-filled tactics to keep us subscribing to our current providers are aggravating and unfair. So today we kick off a rulemaking to put an end to these practices. We propose restricting early termination fees and requiring providers to grant subscribers credits or rebates for the remaining days in a billing cycle after the cancellation of service. We ask questions about legal authority, the impact of our proposed rules, and any alternatives we should consider.”

It’s a safe bet that consumers will welcome any action the FCC takes to eliminate junk fees.

FCC Targets Cable TV Junk Fees and Early Termination Fees
Staff

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