In his State of the Union address earlier this month, President Joe Biden vowed to eliminate what he called "junk fees," the extra charges businesses charge consumers for mandatory fees.
On Thursday, the Federal Communications Commission voted in favor of requiring cable and satellite TV companies to provide an "all-in" price."
The FCC said that by employing all-in prices, consumers will have a better idea what they're paying for and an easier time doing comparison shopping.
Chairwoman Jessica Rosenworcel said consumers have been clamoring for such a rule.
"No one likes surprises on their bill," she said. "The advertised price for a service should be the price you pay when your bill arrives. It shouldn’t include a bunch of unexpected junk fees that are separate from the top-line price you were told when you signed up. But right now this isn’t the case. In fact, our record in this proceeding demonstrates that 24 to 33 percent of consumer bills are special fees like 'broadcast subscription' and "regional sports assessments.'"
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The five-member FCC voted 3-2 in favor of the new rule. Commissioner Nathan Simington was among the two no votes. Simington argued that the FCC lacked the authority to implement such a rule.
"We are yet again adding additional regulatory burden and complexity to an industry that is shedding customers by the millions," he said. "Traditional linear video is on the way out, but we don’t have to shoo them away like the last guest who hasn’t gotten the hint that the party’s over. For every mote of regulatory complexity we add to legacy providers, unregulated online video providers become more nimble by comparison."
DirecTV said it has no comment in response to the FCC's decision.
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