FCC refuses to scrap rule requiring ISPs to list every monthly fee
arstechnica.com
arstechnica.com
Our world needs more transparency. It breeds competition... and hopefully bankrupts a few corrupt corporations.
In places like Europe telcos are able to do it just fine. What you see is what you pay.
> The rules require broadband providers to display, at the point of sale, labels that show prices, including introductory rates, as well as speeds, data allowances, and other critical broadband service information.
The ISP should be free to boldly call out on the billing statement that those fees are government mandated, if they choose to.
Oh it's not a random doorbell, it's a customer who's lawn I mow. ok. Totally ok then.
Again: these aren't fees Comcast chooses to charge; it's money local governments are taxing from their residents, piggybacking on the ISP billing system.
It happens all the time in public discourse, in politics and in business.
Thinking about it, that of course is fundamental to sophisticated negotiations - not revealing your true objectives. And thinking more, people use that same tactic instinctively all the time in social situations.
That's a bunch of bullshit though. The cable companies use vastly different pricing all over the place, so there's already "thousands of variations of those labels" - in fact I'm pretty sure those labels are produced regionally.
I'm sympathetic to the point, and this feels like there's area for compromise here. Something along the lines of "We'll gladly support this change if local governments stop hiding taxes behind us."
I have to believe the NCTA made this issue clear; I wonder then if the FCC noticed, and if so, why there isn't a similar directive levied at municipalities to stop this practice?
To be clear, I fully support forcing ISPs to be transparent, period. But that is a messy issue they're dealing with, and I feel like there could easily a co-argument to localities to stop making it hard for them to be transparent.
Edit: Just saw your comment below about Home Rule. Drat.
from the article:
Providers are free, of course, to not pass these fees through to consumers
It's a low bar, I guess, but the excuses as to why it's too hard are just so insulting to the reader...
It's so incredibly strange to see a large corporation complain that figuring out how much its product costs is too hard with one hand while billing people those same fees just fine with the other.
They just mess around with their actual price until the final price lines up with their marketing. Its not exactly challenging math.
Before buying, I only ever saw one advertised price for this particular product, and since becoming a customer I only ever see that same price on the statements they send me each month.
That's right from the article.
I don't know what "people" want, I just want the quoted price to match the billed one.
If the ISPs wanted to include these fees in their base price, they can, as long as the customer is paying for the quoted price and not surprised by a bunch of unadvertised additional fees.
Consumers cannot make informed decisions about their providers if ISPs are allowed to tack on these costs that are ultimately unknowable to the consumer. If ISPs decide to pass these fees directly onto the consumer, rather than work them into their base price, then the consumer should be able to know what these fees will be upfront.
The ISPs are pushing back about non-mandatory passthrough government fees though. Unlike mandatory fees, which are required by law, non-mandatory pass-through fees are typically discretionary charges that ISPs choose to levy on their customers to offset expenses related to compliance with regulations or taxation.
Is this just not the cost of doing business? Do we pay a liquor license fee when we go to a bar? I think most people would find that absurd because that is just one of the business costs of opening a bar and those fees and taxes the business pays is baked into the price of food and beverages.
To most, this just looks like a way for ISPs to advertise their services at low prices while offloading the cost of doing business onto the consumer. Which the FCC is actually fine with. However, they are no longer fine with these providers lack of transparency in offloading these costs to the consumer.
Some non-mandatory pass-through fees (which FCC allows to be bundled into the base price if the ISP wants to do it that way):
Regulatory Cost Recovery Fee: ISPs may charge this fee to cover the costs associated with complying with various government regulations related to the provision of internet services.
Local Franchise Fee: Some local governments impose franchise fees on ISPs for the use of public rights-of-way or utility infrastructure.
State and Local Taxes: These could include sales taxes, use taxes, or telecommunications taxes that ISPs may pass on to customers as a way to cover the tax burden imposed on their services.
911 Fee: This fee helps fund emergency services like 911 call centers and systems.
Internet Infrastructure Surcharge: ISPs might implement this fee to cover the costs of maintaining and upgrading their network infrastructure.
Broadcast TV Fee: Though not directly a government fee, some ISPs list a Broadcast TV Fee on bills to cover the retransmission of local broadcast stations, which is influenced by regulatory requirements
Universal Service Fund Fee: This fee is used to support the Universal Service Fund, which helps provide affordable telecommunications services in underserved or remote areas (such as affordable broadband internet and phone service for low-income households, rural healthcare facilities, Tribal lands, schools, and libraries.)
Some other fees that some ISPs like to charge that are just literally the cost of doing business.
-Network access and maintenance fee
-Network enhancement fee
-Broadband cost recovery fee
-Internet infrastructure fee
-Municipal construction charge
-Administration fee
-Technology service fee
-High-speed network recovery fee
Some of these fees above would be like if a bar decides to charge a renovation fee after doing a remodel of their premises. Again, these fees are all just the cost of doing business and if they’re going to offload that cost to their customers, then their customers need to know exactly what they are paying for in advance.
If Comcast decides to change it's rate because of those fees it can explain that.
Does access to a conduit count? Does sales tax count?
Pass-through fees is a vague category that effectively means "I spent money" which is useless.
To your point actual pass through fees are transparent. So what don't they want to show you?
The claim of packaging is a crock of shit. Cox won't give me a quote without an exact address since thanks to ISPs building up pseudo monopolies they charge everyone something different.
If it is actually a package you can't list the final price due to that anyway.
After all you don't know where someone lives based on where they buy something.
Remember if you have to deal with quoting accurately you did all of the work to label properly.
>ISPs can meet the label requirement in alternate sales channels either by providing a hard copy of the label or by "directing the consumer to the specific web page on which the label appears."
There's already lookups for sales tax. If they can bill the address the fees, they can show the fees to the customer.
I'll take Falsehoods Programmers Believe About for 200.
Tbh. I didn't know this either. But it seemed so specific to say "status" so I looked it up. Til for me
"About Indian status Find out more about entitlement, benefits and registration under the Indian Act and the Indian Register.
Use of the term "Indian" Many Indigenous people in Canada prefer not to describe themselves as "Indians" and view this term as rooted in colonialism and racism. Under the Indian Act, the precise legal meaning of the term "Indian" refers to First Nations persons who are entitled to registration."
The pass through government fees get labeled as such (small township build rights fee).
The other non government fees that are really just the price of the service are now clear because the government fees are labeled.
So now the FCC is passing a regulation that will be impossible for them to weasel out of. Comcast has nobody to blame but themselves. And personally, the more miserable it makes Comcast, the happier it makes me.
These companies can't spend literal decades operating in bad faith then act surprised when voters and regulators say "enough is enough" and stop taking anything they say seriously.
These are, in fact, fees Comcast chooses to charge.
This reminds me of the confusion of some other employees when a start-up I was working for got purchased. The new owners proposed that we should sign documents agreeing certain conditions in exchange for which they'd pay us a "bonus" of an amount to be determined by a complicated formula at the end of their financial year.
So I glance at this document, it's as I think, and I explain this document requires you to work for them for a period of time, it's a weaker version of the document the senior people are signing or have signed -- but unlike theirs it doesn't actually pay us ordinary employees any money - therefore I explain you should not sign if you think you might want to work somewhere else any time soon. e.g. if your role makes no sense as part of the larger entity and you've got better things to do with your life rather than collect a salary for a few months until they realise you aren't necessary and fire you.
I got widespread objections - it has a bonus scheme. Yeah, the way that scheme works their accountants are going to decide whether they pay us money in a year's time. Guess what those accountants are going to say? They're going to say "No". If they wanted to pay us money, they would just pay us money as they did with our management. Employers can always pay you money. There is tax due on it if they do, but that's their problem not yours. When an employer doesn't give you money the reason is that they don't want to give you money. Don't ask for another explanation, it's demeaning for them to have to pretend and for you to listen.
In a year's time I got a call from the CTO, an old friend, was I on that bonus scheme? Yes, I said, it doesn't matter to me (then or now). He was warning people because he'd been tipped off that of course it was worthless, exactly as I had said, but whoever had told him had seen the numbers from the accountants now.
Comcast can choose not to charge these fees, but it wants to. It would like to be able to say "Our price is $49.99" and then bill you say $84 per month and blame the difference on vague "fees". They only need to justify how that adds up to $84 in the case that someone works very hard, maybe a journalist working on a story about rip off ISPs. And if it's bullshit? They just say "Oops" and refund some fees when caught if their lawyers tell them that's cheapest.
In the UK for a long time ISPs would claim their charges didn't match the advertised price because it didn't include a fee they paid to BT Openreach, the incumbent telco whose copper cables they're using to provide service. In a way they were telling the truth, Openreach did charge them a fee. Unfortunately that fee is published by law, fairly small, and it had been steadily going down, because "maintaining some copper cables under the street" isn't expensive. On the other hand the fee these ISPs would add to the supposed "price" for consumers was larger and going up over time. Eventually the regulator told them to knock it off with this bullshit and just tell people the actual price including this mandatory fee.
The reason I'm on this hobby horse is that I serve on my local village telecom commission and, after 2 years of zoning out and playing solitaire whenever the "franchise agreement" came up as a topic, I finally paid attention and learned that we were making high six figures every year in our general fund charging Comcast users a Comcast tax. It's a thing my commission works on: just how much we should soak local ISP users.
We've gone for several years without a franchise contract renewal because, apparently, Comcast doesn't want to do this anymore. I don't blame them!
And so as a result there's no Internet in your village and you just realised you aren't actually posting on HN and the reply has vanished in a puff of logic? No?
I'm still not clear on what your original objection was to my comment. Do you really not understand what a municipal pass-through fee is? I mean, why would you, but: the concept isn't that hard to grasp, right? It's a tax that the municipality requires the ISP to collect.
Really? How does this requirement supposedly work to your understanding? What exactly would happen if Comcast charged the wrong amount of tax to some customers. Do the customers get a receipt so that they know they've paid the correct local taxes?
The reality is that your village taxes Comcast via this "franchise agreement". Comcast have no obligation to "pass through" that cost to their customers in your village, they choose to charge opaque and vague extra "fees" which may or may not be adjusted according to the tax, and you are (presumably inadvertently) now here arguing that a giant corporation is the victim because they have to pay taxes like everybody else.
That would work if Comcast didn't pay you but that's not the scenario under discussion, I asked what happens if they don't charge their customers exactly what you wanted and the answer is "Nothing". You don't have standing to insist Comcast charge this fee to their customers, that's between Comcast and their customers.
> I have the impression that I've read a franchise contract, and you haven't. Am I wrong?
I have the impression that you haven't read the enabling law for this, and you've assumed that "pass through" establishes some sort of magical tax at a distance when it's merely permission for them to pass these taxes on to their customers. Comcast are not, in fact, required to do this but they choose to do so.
Specifically the 1934 Communications Act (yeah, I know, that's a super old law, it was updated to explain how cable TV works) tells cable companies that they may pass through such franchise fees to their end customer. Note the word used, not "must".
You are correct that it would somewhat increase their costs, such that they may have to increase their billing rate, but they are in no way required to pass the bill through directly to the customer.
Note that this is very different from taxes. Those are typically collected by the business, but owed by the purchaser. Right?
I like taxes! I'm a Democrat! But I think these particular taxes are pretty shady.
There is also usually a benefit for Comcast in this, as well. As such, it feels somewhat ok to treat them separate from taxes collected by Comcast. In particular, it is not uncommon for the franchise agreement to free up a ton of advertising concerns that the company would otherwise have to do.
I do think an interesting question is if this is counted as revenue for them? I'm currently assuming that they do count it in gross revenue? As such, it is literally them finding a way to get more revenue for places that cost more to do business, without open faced charging more.
That is, yes it is an expense that they have to pay, but so is, for example, the gas they have to pay to send a technician out. For that matter, the vehicle is also an expense of doing business. I'd be annoyed if those were line item added to my bill as a way to inflate what I paid. Not sure how this is any different?
Comcast has alll the data it needs to produce an accurate bill and is free to price its service in a manner that hides municipal fees if it chooses. Or not and it can advertise low rates and break the fees out.
Comcast wants to make a profit out of lack of transparency and leverage that lack of transparency in marketing against competitors, public and private.
This is not a difficult problem for them to solve, they just don't want to do it because these companies are run by greedy shitgibbons who don't want to tell you the actual price of their product until the last possible second.
What about listing the ceiling of the passthrough fees e.g. <$7.00 ?
> ISPs could alternatively roll such discretionary fees into the base monthly price, thereby eliminating the need to itemize them on the label.
they are lying and flat rate pricing is prohibited by the FDA? As somebody who does pay flat rate (not to Comcast) I wonder how my provider did pull off such an illegal feat. Also, T-mobile (not exactly an ISP but also a telecom) has "fees and taxes included" flat rate, and they are charging exactly as stated. Would be weird if this prohibition were applying only to ISPs but not to mobile providers?
FTA: "Comcast and other ISPs objected to a requirement that ISPs "list all recurring monthly fees" including "all charges that providers impose at their discretion, i.e., charges not mandated by a government.""
These types of rules may have unintended consequences, for example requiring that you collect a street address before providing pricing. It also may encourage telcos like TMobile, who embeds fees in rates to be more AT&T-like “executive retreat recovery surcharge”.
They already do this. In fact, they will collect your street address before informing you whether they've run fiber to any part of your ZIP (postal) code.
If they charge different fees depending on address (again, not taxes) then it seems like the intended effect to provide the actual price the consumer will pay.
Like, why would you just pay some random invoice some company sends you, without you asking for it?
Would they pay your “resort guest fee” if you sent them an invoice?
One sad part of the situation is that even if you aren't required to do something, it can result in you being completely banned from said business's services under the idea that they can refuse service to someone for any reason. With the business model nowadays mostly being franchises, a ban from an entire subset of businesses can be a substantial burden for someone, especially if the business takes up a large part of the market.
Edit: Not to say this will necessarily happen in this circumstance, but it is a very real possibility when refusing to work with certain businesses.
If you’re unlucky you find out at check-in and your options are pay or find a new hotel while your family waits.
Or if you’re super lucky, you find out at checkout and just refuse to pay and be on your merry way.
What I referred to above is being charged a resort fee after you've already paid the initial booking fee. Last two places I saw this were Balley's in Vegas and VYE in Miami.
* or more broadly, whoever they admit (whether or not it's me) has enough credit at the time of the actual stay to entrust the room to
I agree that resort fees are BS, but hotel listing sites are also an absolute coordinated shakedown on hotels and this is their response.
Some booking sites will have an option to show prices after all fees, but it will never be on by default.
https://www.acm.nl/en/publications/airbnb-will-now-use-clear...
https://www.acm.nl/en/publications/bookingcom-commits-adjust...
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_...
So an ISP needs to advertise a "$29/mo + local fees" plan as "$29/mo + $0-$80/mo in fees"
I guess other than making the advertising super annoying, I don't understand the ISP objection. Assuming every provider is faced with roughly the same kind of fees and it's a level playing field.
> Providers are free, of course, to not pass these fees through to consumers to differentiate their pricing and simplify their Label display if they believe it will make their service more attractive to consumers and ensure that consumers are not surprised by unexpected charges.
This is a surprisingly snarky response from the FCC. "If you are so worried about the label being confusing why not just raise your prices?" It's hard to believe that they are suggesting this seriously.
Businesses in many domains love to claim that any increase in their cost - taxes, suppliers, etc. - must be passed on to their customers.
That is absolute ripe BS, and anyone who knows any economics, finance, or has run even the smallest business knows it. More bizarre is that consumers - and others who know better and have no vested interest in the BS - all repeat it.
And since it doesn't come from a magic tree, it has to come from customers or from profits.
And a lot of these businesses have low profit margins to begin with (ie health insurance). Those businesses that are already low margin do have to pass the costs on to customers otherwise the risk adjusted return of their business is not worth it compared to savings bonds.
Ultimately if the cost of doing business is higher whether its because the government has imposed additional fees or because your money tree died, the cost of the producing the product has gone up and this has to be an upward pressure on prices. Unless you're running a money tree farm which must be the "smallest businesses" you're referring to.
As a fairly impartial outsider (I'm from the UK and the price we see advertised for broadband on the website after entering our address is the price we pay), I'd like to counter that by simply agreeing that yes, the obvious outcome is that the customer pays for the fees. However, that's not what this discussion is about. The discussion is about whether the customer is told the price will be $X and then they have to pay $Y where Y is considerably more than X.
Instead of appealing to the magic money tree, companies simply need to be honest when they tell customers the price. They are free to keep the same prices, they just now need to say the price is $Y, and can choose to say that it's comprised of $X and then all these other things or just say it's $Y and leave it at that.
The reason companies don't want to do that, is they want to compete on having the lowest number for $X and sneak as many extra charges into the real price $Y in the hopes that customers don't discover it until they're locked into a contract.
Part of the problem is that the US has had this tradition for a long time with sales tax. Now I can understand online shops listing prices without sales tax, because it genuinely depends on where the customer lives. But in a regular real-world shop, they know exactly where the shop is and what the final cost of an item will be when it's sold, regardless of who buys it.
You have the same thing with tipping - you buy food at a restaurant, and then get told some nonsense that amounts to "because we don't pay our workers a fair wage, we're going to add an extra 20% on top of the price we offered and on top of taxes and all the rest". With your money tree argument, I'm surprised you're not in favour of your restaurants advertising a steak at $20, then when the bill arrives it's $20 plus $30 for the ingredients, $20 for the cook, $10 for the dishwasher, $10 for the waitress, $10 for the supervisor, $5 for the parking lot because the company rents that from someone, $2 for the company's phone line, $2 for the gas and electricity used, $1 because they need to clean the tables between customers, $2 for the condiments you might have used, and and did we mention that we want 20% tip as well. Yes, this is all the cost of business, but the customer doesn't need to know all that - they are, after all, just buying a steak.
The situation with broadband should be just as simple - "I want an internet connection. How much do you want to provide it to me?"
That's false. See the GGP.
??? Are you arguing that increases in costs are not passed on to consumers at all?
It's also worth pointing out that the FTC is not just talking about passing along random costs - they are specifically talking about things like the Universal Service Fee (basically sales tax for ISPs) and local regulatory fees. Things that are assessed on customer billing.
Now that you point it out, I can see how it might be read that way. Beyond a doubt, in practice, many cost increases cause some increase in sale price, and that always will be true (and should be true). I'm objecting to the word must, in "must be passed on to their customers". Businesses have a choice, and making that choice every day is a fundamental task in business. I might also object to passed on, but that's a technicality.
> It's also worth pointing out that the FTC is not just talking about passing along random costs - they are specifically talking about things like the Universal Service Fee (basically sales tax for ISPs) and local regulatory fees. Things that are assessed on customer billing.
That conflates what is with what must be. The ISPs often do show it on customer billing, but they could aborb the costs and not show it. That's the point.
Basically, either itemize or be upfront. If the ISP doesn't want to itemize, then the bill must match the advertised price. If they want to keep the advertised price lower, they need to itemize all additional fees being added to the bill.
> Providers must itemize the fees on consumer bills, and we see no reason why consumers cannot assess the fees at the point-of-sale any less than they can when they receive a bill.
The FCC's entire rule is to make providers itemize fees on advertising, just like providers are already doing on their bills.
It's like if your supermarket advertised their prices as $50, and then you go up to the till and it's $60 because they've included a "shelf stacking fee", and they claim that they can't just include that in their advertised price because their shelf stackers' wages vary by jurisdiction.
This kind of fee hiding is already conclusively illegal for a variety of reasons and not at all what the FCC is discussing in this article.
This is much more akin to how, a grocery store might have to disclose a liquor tax as part of the sales price instead of the sales tax.
American ISPs operate under a confuseopoly paradigm of customer interaction. A confused customer is more likely to shut down and just pay the fees they don't understand.
Forcing companies to enumerate each item that goes into the cost will allow customers to determine just how shitty a value proposition those ISPs are offering. These companies have been in full damage control mode for years, having earned themselves positions of significant scorn in the US already.
A savvy customer should. If 90% of the bill is Comcast, I'm going to negotiate with Comcast. If 90% is municipal fees, I'm going to call my city council.
In my area we have small shopping districts that have their infrastructure funded through a 1.7% sales tax on every retail business. Best Buy doesn't change the price of the iPhone 14 to reflect this. Should they? I don't know. Instead taped to the surface of every checkout is a typed note informing the customer of the improvement fund. I think a good compromise would be to allow advertising to remain how it is, but require a full detailed bill at the point of sale.
But at least I can see the final price before I choose to commit to buying the item. Many ISPs won't tell you what the bill is going to be until they've already wired you up for service.
Good.
NCTA asked instead to be allowed to label the maximum possible total bill customers would face, but FCC has, apparently, rejected that.
My stake here is just to alert people that their municipalities are taxing them for using the Internet, and hiding it in "fees" that most customers assume are Comcast soaking them (see: this very thread).
Because of the historical and contractual differences between TV cable and fiber, there are municipalities where you're taxed differentially based on whether you're with Comcast or ATT/Verizon!
This is what surprises and concerns me most about the ISP's dispute. Why wouldn't they be excited to "pass the buck" and blame the government for your higher bill?
While these pass-through fees probably are a logistical nightmare for them, the fees themselves don't seem to be anything new thing so they must already be dealing with them anyways and the rule is just telling them share that information with the customer. Unless they've been absorbing the fees them as a cost of business and just charging higher service rates, in which case they aren't actually being passed through. Which seems like it would either make the whole conversation moot, or is something they could get in trouble for.
Maybe I am just being cynical, my opinion of ISPs has been soured of late, but I suspect there is more to than just logistics. Possibly, people are being charged "unfairly" paying different rates for the same service regardless of location, but in the other direction: I.e. "Everyone" is paying $X for Y Mbps Down / Z Mbps Up, but some of them are paying $10 in pass-through fees while others are paying $20, and the ISPs are pocketing the difference.
Alternatively, particularly if there is actually competition in the area, it may reveal that where ISPs appear to be offering comparable services at a similar rate have actually negotiated different pass-through fees are just charging more for the base service instead of passing those saving on to customers.
It's probably debatable whether these things are actually bad or just the market at work, but it does make sense that ISP wouldn't want people catching onto them. In general, the current ambiguity would work in their favor because every time your bill goes up they can just hand-wave it as, "Oh, that includes various government fees and so on" where not the bill would have to actually say who's rates are going up.
That being said, I am curious what cities/regions or restaurant types you see this happening at. I don't think I've ever encountered anything like that where I live (southeast) except for things like the customary mandatory 18% gratuity for parties of 6 or more.
Highest I've seen is 8% while also asking for a tip, but at least the fee is clearly listed at the top of the menu: https://asliceofny.com/sunnyvale/menu/
Yeah, this is the kind of bullshit I'm talking about. It's a percent-based surcharge, so why can't they just increase their prices by 8%?
Prices on the menu are meaningless at this point. With sales tax, the "obligatory" tipping and these new bullshit fees you'd be closer to the real price by mentally doubling everything on the menu. How people put up with this shit is beyond me.
For instance, I went out to eat the other day, and I hadn't gone to a regular restaurant in awhile. Prices seemed reasonable. Then the final bill came, and had almost $7 dollars worth of various little fees.
Prior to 2020, this was nearly unheard of, and I certainly never experienced it.
I have vowed to not eat out for the foreseeable future without a really compelling reason.
The calculus would be different if that had to be listed in the price or otherwise disclosed in an obvious manner. This happens in other establishments too.
For another example, apparently, my apartment mandates a cleaning "charge". This is not disclosed in the lease, nor on the website, or anything of that nature. Its taken out of your deposit, non optional. Apparently, this is completely legal, and its frustrating.
>>FCC says “too bad” to ISPs complaining that listing every fee is too hard<<
They shouldn't even be allowed to list a price that doesn't yet include the fees. No asterisks. No appendices. No see below. No fine print. Just list the real price. Always.
Generally you'd probably negotiate w/ stakeholders BEFORE advertising. I'm not sure why any sane person would advertise something before having a solid idea of what is possible, unless they are running for political office.
Often the more expensive service is more profitable but if you want simple pricing you can do the opposite.
No cost until the service location is known. It's a two way street, right? It's entirely reasonable that if you were to obligate the ISP to deliver precision in pricing they'd have no recourse but to require accurate disclosure of the service location.
This is all fantasy, however. This clown world we've built doesn't contemplate such things. The minor ask the FCC is making here is as far as it will go, and if the big ISPs put enough campaign money into the right "family foundations" we might not even get that much.
Just like one can see 2 jars of peanut butter side by side in the store.
Even if you do the "taxes not included" dance, I doubt US ISPs are incapable of just charging (and advertising) a single sum that covers everything. I'm honestly surprised this is not already happening (again I could be mistaken)
Here, the FCC I think provides a pretty reasonable suggestion that they can use "up-to" fees when displaying prices But it still means you have to know some of the geographic data on the person you are advertising a price too.
And it can't be hidden in the terms - all the actual amount paid by a regular user must be the headline price of the advert. Taxes, fees, etc must all be included.
It works pretty well.
But in general, it means there are usually no hidden fees.
I had assumed that most of the rest of the country was like this, and you only got prices after you gave an address.
Even a medium size ISP that was running a "price for life" deal, didn't even advertise with the price was, and you got better deals if you were in a competitive area. (Based on comparing mailed advertisements).
Prices appear on physical mail advertisements I get for internet service, I get quite a lot of them, but billboards, television ads, and everything else simply lacks a price and touts product quality and speed.
You are simply not permitted to communicate any price other the total price, which must include government fees and sales taxes.
What makes this especially nice is that Australia also doesn’t allow employers to pay under a living wage (currently about USD $21 for casual staff), which means tipping culture never took off here, so your total out of pocket is always exactly equal to the advertised amount.
Aide: I believe in some jurisdictions in Australia it’s actually illegal to solicit tips, as it’s known to be discriminatory (since tipped amounts are known to vary by race, gender, age etc..).
I'm honestly asking because I don't know.
The FTC suggests though that ISPs just raise prices and internalize the fees. But then your price is always going to look worse than the next guy, and you may just encourage local governments to give you more fees for you to bury for them.
It's silly ISPs are fighting this, because if they can charge you a specific fee, it's obvious they can provide an CSV or Excel file with all the fees. I don't see anything too hard about it. It's literally a SELECT and maybe a JOIN with it.
Hell, I don't even understand what's so hard about it. Literally, Twilio gives you a nice CSV file with all the fees and tiers applicable to you and you can use it to ask for discounts. If Twilio can do it, you standard AT&T for sure can.
It's ironic how in The Land of the Free, ISPs are fighting to be opaque. If your corporate strategy is based on obscurity, maybe it's time for some serious consumer protection regulation?
I don't own the product (have a relationship with the person ultimately setting the pass through charges) and I sell the subscriptions to the end user for access.
Unless those passthrough charges are made available to me before the customer signs up, I cannot reasonably estimate them when advertising the service. Instead, I can only pass them through when they appear on my invoice, or absorb them. In fact those are the 3 options here. Pull out of the market, pass the costs through (and attract fines) or absorb the pass through fees.
Punishing me as the access provider doesn't make sense. Whether or not you have personal misgivings against the access carrier, it seems like the municipality setting the pass through charges should be asked to make them more consistent, or provide an API for lookup.
I dont know what the response here is going to be from the retailers, but I am betting its not going to be pro consumer.
Either way, consumers are paying for it. The two parties are just arguing over how it is presented to the public. We will probably end up with even less transparency in advertising with tactics like: "plans as low as $X" or the like.
Similarly, in cases where a company claims complexity, "Never attribute to inability via complexity that which is adequately explained by greed." Call it Corn's Razor, if you will. :)
One customer-useful approach would be a "dslreports.com" providing precise total average monthly bill amount for a specific address along with the breakdown.
The bandwidth is mediocre and I could switch to other companies but just finding the price was hard because there were activation fees and equipment fees and state and local fees and an fcc fee and some random fee they decided to add that changes from month to month. It was so weird. And also odd that they would have different state, local, and fcc fees that att didn’t.
$50/mo FCC fee itemization fee
From what I can tell, that's mostly been limited to wireless spectrum regulation these past ~20 years, with a few exceptions.