FCC Proposes Ban on Cable "Junk Fees"

These are busy times at the Federal Communications Commission (FCC). FCC action was limited for an extended period of time because a missing commissioner meant 2-2 ties on many issues by the Democratic and Republican appointees. Now that the commission is at full strength with Democrats in control, the Commission has been actively pushing forward with a number of rules.

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The latest propsoal advanced by Chairwoman Jessica Rosenworcel this week are rules to eliminate "video service junk fees" on cable bills. Rosenworcel's proposal, which will be voted on by the FCC at their December 13th meeting, would prevent cable and satellite video providers from several actions that Rosenworcel says are anti-competitive and anti-consumer.

• Prohibit early termination fees for video service contracts
• Require video providers to grant a prorated credit or rebate for the remaining whole days in a monthly or periodic billing cycle after the cancellation of service

“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.” -- FCC Chairwoman Jessica Rosenworcel