FCC Eyeing 'Click to Cancel' Requirements for Consumer Services
FCC commissioners, along party lines, released a notice of inquiry Wednesday examining how easy -- or not -- it is to cancel cable, broadband, satellite TV and voice services and whether cancellation should be as simple and straightforward as enrolling often is. The NOI, adopted 3-2 Oct. 10, also raises the idea of the FCC requiring live customer service representatives. Comments are due Nov. 22, replies Dec. 9, in docket 24-472.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
With the FCC receiving hundreds of thousands of consumer complaints annually, many featuring people trapped in elaborate phone trees, "We cannot ignore these complaints, especially not when we know that it is possible to do better," agency Chairwoman Jessica Rosenworcel said. The NOI's aim is "to understand the state of customer service in communications -- from top to bottom and inside and out," she said.
In a statement, Commissioner Brendan Carr said the NOI was a deliberate political distraction from White House communications policy failures such as the FCC's expired spectrum auction authority and the slow progress of the broadband equity, access and deployment (BEAD) program. "We should leave those cross-cutting consumer protection issues to the nation’s lead consumer protection agency -- the FTC," Carr said. "We should color within the lines drawn by the Communications Act." Commissioner Nathan Simington, the other dissenting vote, didn't issue a statement.
The NOI also came under some industry fire. "In today’s competitive broadband marketplace, providers are focused on delivering excellent customer experiences with faster speeds, lower prices, and more choices," USTelecom said in a statement. "Rather than micromanaging providers’ customer service departments, policymakers should all be laser-focused on connecting Americans and achieving internet for all."
The NOI said it seeks input on whether subscribers -- if they can enroll in a service via the provider's website -- should be able to take that same easy "click-to-cancel" route for cancellation. It also seeks input on how processes for canceling services are disclosed and what the agency can do to ensure subscribers have reasonable access to that information.
Pointing to the FCC's goal that "video, voice, and broadband customers have access to a live agent within a reasonable amount of time," the NOI asks about extending its cable customer service requirements to broadband, voice and satellite TV service providers. It also asks about requiring that customers have the ability to "dial 0" to reach a human and whether subscribers should be given a notice and reasonable amount of time to cancel before an automatic renewal or price hike.
In statements, Rosenworcel's fellow upvotes on the NOI applauded the agency for tackling customer service frustrations. "Our agency does best when our work honors the people it serves, and this item is wholeheartedly in the service of people," Commissioner Anna Gomez said. Commissioner Geoffrey Starks said he had questions in the NOI about companies' use of AI in customer service, including as an alternative to human customer service reps.
The NOI asks questions about how emerging AI capabilities might affect requirements that service providers offer live customer service support.