Junk Fee Ban Hits Your Cable and Satellite Service Providers

The Federal Communications Commission (FCC) has passed new rules aimed at making it easier for cable and satellite TV customers to compare prices and shop around for the best deals.

The "all-in" pricing rules will require those providers to clearly and prominently show the total cost of their services, according to the rules.

That includes broadcast retransmission consent, regional sports programming and other programming-related fees as a prominent single line item on subscribers’ bills and in promotional materials. TV providers often use deceptive junk fees to hide the real price of their services, the FCC said in a statement.

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"No one likes surprises on their bill," said FCC Chair Jessica Rosenworcel in a statement. "The advertised price for a service should be the price you pay when your bill arrives. It shouldn’t include a bunch of unexpected junk fees that are separate from the top-line price you were told when you signed up."

That is not the situation now, however, Rosenworcel said. "In fact, our record in this proceeding demonstrates that 24 to 33 percent of consumer bills are special fees like 'broadcast subscription' and 'regional sports assessments.'

Eliminating junk fees has been a priority under the Biden administration and a number of agencies including the Federal Trade Commission have cracked down on these hidden fees amid calls for more transparency from companies. Earlier this month in his State of the Union address, President Joe Biden touted his administration’s efforts in doing away with junk fees in several markets including the banking and travel industries.

Last year, the FCC proposed rules to prohibit cable operators from charging early termination fees and require them to provide prorated credits or rebates to users after canceling their services. The public comment period on this proposal closed on March 5.

The FCC's actions come amid a shakeup in the media industry in which cable operators continue to struggle with pay TV rates that are at their lowest point since 1991. There are about 75 million pay TV subscribers in the U.S., down from 100 million in 2012, and analysts think this could fall to 50 million in the near future.

Streaming service options

A recent study found that people are paying high prices for streaming, spending nearly $1,000 on average on subscriptions. This turns out, however, to be less than the average spent on cable, which is more than $200 per month, according to a Cord Cutters News report.

Even as the cost of watching your favorite programs keeps going up, check out Kiplinger's guide on how to save on streaming services and find deals.

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