Last week, the Federal Communications Commission announced that Chairwoman Jessica Rosenworcel introduced a proposal that would require all cable operators and direct broadcast satellite providers to specify the "all-in" price clearly and prominently in their promotional materials (and on subscribers' bills as well).
If the proposal is adopted, this means that, when advertising a price, cable and satellite providers will be required to state the total price that consumers are obligated to pay, including any additional fees charged. The proposal aims to eliminate the practice where a provider describes additional fees as an excluded "tax, fee, or surcharge."
In a statement, Rosenworcel said, "Consumers deserve to know what exactly they are paying for when they sign up for a cable or broadcast satellite subscription . . . . We're working to make it so the advertised price for a service is the price you pay when your bill arrives and isn't littered with anything that resembles junk fees."
The FCC action here is another example of how seriously the Biden Administration is taking the issue of "junk fees." Last November, President Biden said that he's looking to agencies across his administration to take action on so-called junk fees. And, in October, the Federal Trade Commission had already proposed a rule to crack down on them.
Advertisers should heed the warnings -- and examine their own pricing practices now.
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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
Originally published by the New York Legal Ethics Reporter
This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
