The key to saving money is to shop around, right? Well, it’s not always that simple because sometimes the pricing can be complicated.
But not anymore when it comes to comparing plans for internet service. Easy-to-read, itemized labels are now a requirement.
“Unfortunately, we’re often at the mercy of these companies who can charge us whatever they want, and they don’t necessarily tell us what they’re charging us. So at least with the broadband label, we should have some better sense of what we’re paying for,” said Justin Brookman with Consumer Reports.
The new labels show the provider’s name, the plan’s name, and the base monthly price for internet service, along with any additional one-time or recurring fees -- like installation charges, modem rental fees, and other equipment-related fees -- which must be separated from the base price.
The new labels are mandated by the Federal Communications Commission after nearly a decade of lobbying by Consumer Reports and other advocacy groups.
“Cable bills are one area where we’ve gotten the most complaints from consumers. Sign up for one plan and then you’re getting a broadband modem fee, you’re getting a regional sports package fee, you’re getting this weird tax that’s four letters, you don’t know what it is. These are often monopolies, so they can get away with it, and so you don’t have a lot of choices. But at least now you can know what they’re charging you,” Brookman explained.
The terms and length of promotional pricing must be outlined. Along with the price of service once the promotion expires. Companies should have links to information about discounts if customers bundle their internet with TV or other services.
This is welcomed news for internet customers like Roland Netzer, who depend on a good connection for a reasonable price.
“You want to make sure that you’re getting what you want and not paying for all these things you don’t need,” Netzer said.
The rule applies to all internet services. Smaller internet service providers (ISPs) have until October to comply.
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