FCC Adopts 'All-in' Cable/DBS Pricing NPRM
The FCC's proposed "all-in" video pricing rules for cable and direct broadcast satellite (DBS) operators' bills and promotional materials wouldn't cover other MVPDs, though the agency in the NPRM adopted last week and released Tuesday seeks comment on whether such rules should also cover them, and whether it has the authority to do so. Consumer advocates expected the item on circulation to pass (see 2303270043). NCTA, ACA Connects, DirecTV and Dish Network didn't comment.
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"No one likes surprises on their bill, [and] the advertised price for a service should be the price you pay when your bill arrives, rather than hide a bunch of junk fees that are separate from the top-line service price," Chairwoman Jessica Rosenworcel said in a statement. "Increases in programming costs shouldn’t be described as a tax, fee, or surcharge." She said all-in pricing as proposed would make price comparison easier and also increase cable and DBS competition through more transparency.
ACA Connects members "are committed to transparency in their sales and billing practices -- a commitment that stems from their ethos as community-based providers with longstanding ties to their communities," CEO Grant Spellmeyer said in a statement. "As this proceeding unfolds, we are eager to provide and review the evidence and examine the root causes of ever-increasing prices for video programming that our Members distribute, as well as ensure that any new requirements do not have the unintended effect of making video prices more opaque or confusing for subscribers.”
President Joe Biden said in a statement the FCC move is part of White House efforts toward "lowering the cost of living for the middle class, and that includes cracking down on companies’ use of junk fees to hide true costs from families, who end up paying more as a result." Biden said the FCC proposal "would help consumers comparison shop between providers and increase competition for viewers. Junk fees may not matter much for the wealthy, but they hit working families hard, costing them hundreds of dollars that could be used to help pay their bills."
The all-in pricing rules wouldn't include equipment costs, which are variable for each subscriber, with some using their own equipment and not incurring charges at all from their cable or DBS provider, according to the NPRM. It asks about the extent to which providers are already advertising all-in prices that cover programming-related costs, taxes and other fees, and whether saying the pricing has to be "prominent" is sufficient or if the commission needs to spell it out further such as "in a consistent font size or via some other measurable metric." It also asks whether the TV Viewer Protection Act (TVPA) changed MVPDs' billing or promotional practices and what rules or franchise agreement terms franchising authorities have in place about these kinds of billing and advertising practices, and if the FCC proposal could cause a conflict. It said Section 642 of the Communications Act, added by the TVPA, requires MVPDs to include an itemized statement in bills, and that the "all-in" pricing meets that statutory directive.
The FCC said it's "concerned" some cable and DBS operators might portray retransmission consent and sports programming costs as separate line items on a bill in a way that they appear to be government-mandated charges.