Biden Admin Proposes Cable Cord-Cutting Costs In Latest Junk Fee Proposal
OAN’s James Meyers
9:44 AM – Wednesday, November 22, 2023
The Biden administration is proposing a rule for cable customers to not be charged extra fees for leaving their contracts early.
The Federal Communications Commission (FCC) made the announcement on Tuesday, which would make cable companies and direct broadcast satellite (DBS) providers stop early cancellation fees.
Additionally, it would also require cable and DBS companies to provide their customers a prorated credit or rebate for the remaining days within a billing cycle after cancellation, according to the FCC.
“No one wants to pay junk fees for something they don’t want or can’t use,” FCC Chairwoman Jessica Rosenworcel said in a statement. “When companies charge customers early termination fees, it limits their freedom to choose the service they want.”
“Companies shouldn’t lock you into services you don’t want with large fees. It’s unfair, raises costs, and stifles competition. We’re doing something about it,” President Joe Biden wrote on X, the platform formally known as Twitter, on Tuesday.
This comes after Biden’s July 2021 executive order, which called for ending early termination fees, according to the FCC.
Furthermore, the FCC also proposed “all-in” pricing for satellite and cable providers that way customers can see the total service costs, fees included, up front.
“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,” Rosenworcel said.
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What are the main provisions of the proposed rule regarding early termination fees for cable and DBS providers?
The Biden Administration Proposes Rule to Eliminate Early Termination Fees for Cable Customers
In a move to protect consumers and promote fair competition, the Biden administration is proposing a new rule that would ban cable and direct broadcast satellite (DBS) providers from charging extra fees for early contract termination. The announcement was made by the Federal Communications Commission (FCC) on Tuesday, signaling a significant step toward ensuring transparency and choice for cable customers.
The proposed rule not only aims to eliminate early cancellation fees but also requires cable and DBS companies to provide their customers with a prorated credit or rebate for the remaining days within a billing cycle after cancellation. This ensures that customers are not burdened with additional costs or locked into services they no longer require.
FCC Chairwoman Jessica Rosenworcel expressed the importance of protecting consumers from unjust fees, stating, “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.” This sentiment echoes the administration’s commitment to providing Americans with a fair and competitive market where they have the freedom to select the services that best meet their needs.
President Joe Biden himself took to X, formerly known as Twitter, to voice his support for the proposed rule. He emphasized that companies should not be allowed to lock consumers into unwanted services with exorbitant fees, as this unfair practice ultimately raises costs and stifles competition. The president’s July 2021 executive order played a crucial role in paving the way for this proposal, highlighting his commitment to protecting consumer rights in the telecommunications industry.
The introduction of the proposed rule is a positive development for cable customers, as it aims to provide them with greater flexibility and control over their service agreements. By eliminating early termination fees and requiring prorated credits or rebates, the rule ensures that customers are not penalized for ending their contracts early. This move not only benefits consumers but also fosters healthy competition in the market, encouraging companies to offer better services and pricing to attract and retain customers.
However, it is important to note that the proposed rule is only in the initial stages of consideration. It will undergo a public comment period before being finalized and implemented. Nonetheless, the administration’s efforts to address unfair practices in the cable and satellite TV industry are commendable and demonstrate its commitment to prioritizing consumer rights.
In conclusion, the Biden administration’s proposed rule to eliminate early termination fees for cable and DBS customers is a significant step toward establishing a fair and competitive telecommunications market. By protecting consumers from unjust fees and providing them with more freedom to choose their preferred services, this rule has the potential to benefit millions of Americans. As the proposal progresses through the regulatory process, we anticipate further developments that will shape the future of the cable industry.
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