Broadband “Nutrition” Labels Now Approved by the FCC

Interestingly enough, this proposal is not new. Back in 2015, the FCC first launched this labeling initiative under the Open Internet Order, which was repealed in late 2017. Somewhere in between the birth and death of that order, the FCC approved a general framework for broadband labeling. This was done in an effort to provide more transparency to consumers looking for internet services that meet their needs and budget.

According to then-FCC Chairman Tom Wheeler in a press release about the new internet labels, broadband labels are about increasing the accessibility of internet plans for customers. He said, “These labels provide consumers clarity about the broadband service they are purchasing, not only helping them to make more informed choices but also preventing surprises when the first bill arrives…Customers deserve to know the price they will actually pay for a service and to be fully aware of other components such as data limits and performance factors before they sign up for service.” So, in other words, the FCC has been trying to help customers navigate the murky waters of broadband subscriptions since 2016. To that end, they attempted to create a lingua franca for the jargon nobody understands when they encounter marketing materials for internet plans in the wild.

As of November 17, 2022, the FCC sent out a press release saying that they had approved the order to require Internet Service Providers (ISPs) to display these broadband consumer labels on their marketing and point of sale content.

Why stake this particular flag at this particular time? In the same press release, former Director of the Consumer Financial Protection Bureau, Richard Cordray, said, “Broadband is quickly becoming a necessary part of everyday life for millions of consumers.” And that, again, was in 2016. After struggling through a global pandemic that stuffed those consumers into quarantine with painfully limited non-digital connection, it’s safe to say that more people probably agree with former Director Cordray than ever before. FCC Chairwoman Jessica Rosenworcel is one of those people: in the November 17th press release, she states, “Broadband is an essential service, for everyone, everywhere. Because of this, consumers need to know what they are paying for, and how it compares with other service offerings.”

Now, if the labels were thought up in 2016, why are broadband labels something the FCC is circling back to in 2022? Simple: in 2016, the internet fact labels were approved but not made mandatory for all internet providers. Understandably, when given the option to use this new label, internet providers did not jump at the chance to plaster it all over their marketing materials. As helpful as this label is created to be for customers, it could be just as detrimental to the image that an internet provider might try to create for their product.

Therefore, this year and in conjunction with the Infrastructure Investment and Jobs Act, the FCC is trying again to implement those broadband fact labels that could help consumers make more informed decisions about which internet brand they sign up for. Clear labeling of broadband services may also increase competition between providers and may, in turn, produce better deals for consumers.

Although the FCC has now approved the order to make broadband labels mandatory, this rule can’t become law just yet. Before that, this order must undergo an extensive review process to approve the content and format. This segment of the process is important for ensuring the usability of these proposed labels by helping the FCC confirm that a typical consumer can truly benefit from this label. Once the broadband consumer label order is finalized, brands will have 6-12 months to comply with that order.