Broadband Industry Supports FNPRM on Labels; Gomez's Vote Uncertain

Broadband industry officials indicated broad support for the item, while public interest groups have said rolling back label requirements could hurt consumers. Relaxing the rules “takes information away from consumers,” said Public Knowledge Legal Director John Bergmayer.

But Lerman Senter attorney Stephen Coran, who represents WISPA, said stacking extra requirements on labels leads to “label bloat,” making them “ineffective.”

The draft item is aimed at paring down the agency’s requirements for broadband labels to what is in the statute and at reducing compliance burdens for companies, said an FCC fact sheet.

Among the rules proposed for deletion are those that treat telephone calls as a point of sale, provide information on the defunct Affordable Connectivity Program, and require that labels be machine-readable and archived for two years. The item would also seek comment on eliminating multilingual display requirements and on other ways to streamline the FCC’s broadband label rules. “We propose and seek comment on eliminating certain broadband label requirements to better align the label with the Infrastructure Act and reduce compliance costs while preserving the labels’ value to consumers,” said the draft FNPRM.

Coran told us that WISPA particularly supports the proposed elimination of provisions that count telephone calls as a point of sale to consumers, meaning providers must read broadband labels to them over the phone. “It always seems rather unusual to require a customer service representative to recite a label to someone who is calling and asking for information on broadband service.”

WISPA had proposed doing away with the rules in comments filed in the FCC's “Delete” proceeding. Coran also said the rules requiring labels to be machine-readable and archived are burdensome and go beyond the statute. “I’m not aware of anybody ever asking for that information.” AT&T has expressed support for the FCC proposal as well, and USTelecom has advocated for simpler labels.

In addition, industry officials pointed to the FNPRM's proposals on multilingual display rules and pass-through fees as important issues for providers.

Bergmayer argued that the proposals would make it difficult for consumers to know what is in potential broadband plans, “making it hard for them to cross-shop from one provider to another is obviously not good.”

Public Knowledge filed joint comments in 2022 with Consumer Reports and Common Sense supporting the broadband labels. “Transparency helps empower consumers to, at a minimum in the ISP marketplace, discover the price they are paying for a product and its features, and for some, compare competing products to help make informed purchasing decisions,” the groups' filing said.

The FCC’s Republicans are expected to approve the item, but it’s uncertain how Gomez will vote. She wasn't at the agency when it enacted the label rules that are now targeted by the FNPRM, so she doesn’t have a clear record on the matter as a commissioner. Gomez has previously been supportive of NPRMs in proceedings where she’s seen as unlikely to back the eventual rule changes. For example, she voted to approve the agency’s recent quadrennial review NPRM while cautioning about the negative aspects of broadcaster consolidation.

However, she has also repeatedly emphasized support for consumer protections. Her bio on the FCC's website says “she knows we must be vigilant about protecting consumers. From spam calls and texts to accessible emergency alerts, Commissioner Gomez believes consumers’ interests must lead communications policymaking.”