WASHINGTON, D.C. – June 20, 2023
In a continued effort to alleviate the financial burden on middle-class families, President Joe Biden addressed the issue of hidden costs and proposed a new rule by the Federal Communications Commission (FCC) today. The rule, if implemented, would mandate cable and satellite TV providers to disclose the all-inclusive pricing for their services upfront.
President Biden emphasized the detrimental impact of companies’ utilization of concealed fees, also known as “junk fees,” which result in families paying more than they bargained for. He applauded the FCC, led by Chairwoman Jessica Rosenworcel, for their initiative in proposing a measure that aims to combat this deceptive practice.
Cable and satellite TV providers have long employed the tactic of obscuring additional charges under misleading labels like “broadcast TV” or “regional sports” fees. These fees, despite implying additional services, often contribute no real value to customers. Shockingly, a recent report suggests that these hidden fees inflate customer bills by nearly a quarter of the base service price.
If enacted, the FCC’s all-in pricing proposal would have a twofold effect: empowering consumers to make informed choices by facilitating comparison shopping between providers and fostering increased competition among viewers. President Biden highlighted this initiative as the latest step taken by his Administration to promote transparency and drive down costs for hardworking Americans. The President acknowledged that while junk fees may hold little consequence for the wealthy, they have a disproportionately burdensome impact on working families, costing them hundreds of dollars that could otherwise be allocated toward essential expenses.
The proposed rule marks a significant stride in President Biden’s commitment to alleviate the financial strain on the middle class.