The fees that cable and satellite companies charge subscribers for eliminating their service before the end of their contracts would be prohibited under a new FCC proposal.
President Jessica Rosenworcel today outlined a proposal that targets “unwanted fees” on video services, in line with President Joe Biden’s actions to reduce these consumer fees across all sectors.
Some subscribers who sign contracts with cable and satellite operators face paying early termination fees if they want to end the contract before the expiration date. Companies implement these fees to reduce turnover.
The FCC proposal would also seek to require subscribers to pay for the entire billing cycle when they terminate service before that date. The proposal would require video providers to provide a prorated credit for the remaining days of a billing cycle. The proposal does not appear to apply to streaming services.
In a statement, Rosenworcel said: “No one wants to pay trash 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. 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.”
The FCC will vote at its December 13 meeting whether to issue a notice of proposed rulemaking for public comment.
