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FCC targets TV cancellation fees

2023-11-22 18:04 by


Federal Communications Commission Chairwoman Jessica Rosenworcel today announced a proposal to eliminate video service junk fee billing practices by cable operators and direct broadcast satellite (DBS) service providers and study their impact on consumer choices.

The proposal, which the commission will vote on next month, would also force cable companies and satellite TV services to give customers a rebate if a subscriber leaves before a billing cycle ends. FCC officials said eliminating early termination fees would benefit the video-streaming business.

"No one wants to pay junk fees for something they don't want or can't use. When companies charge customers early termination fees, it limits their freedom to choose the service they want," said Chairwoman Rosenworcel. "In an increasingly competitive media market, we should make it easier for Americans to use their purchasing power to promote innovation and expand competition within the industry."

The early termination proposal is part of the Biden administration's effort to axe so-called junk fees. President Biden has already taken aim at stamping out bank fees, extra charges from food delivery services and surcharges on hotel stays. Junk fees hurt the economy and siphon billions of dollars from U.S. households every year, federal officials have said.

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