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December 11, 2020 03:30 am

'We Need a Broadband Internet Pricing Equivalent of Nutrition Labels'

An anonymous reader shares an article that's part of the Future Agenda, a series from Slate in which experts suggest specific, forward-looking actions the new Biden administration should implement. Here's an excerpt: Consumers in the U.S. face an infuriating lack of transparency when it comes to purchasing broadband services. Bills are convoluted, featuring complex pricing schemes. Roughly 7 in 10 U.S. adults surveyed by Consumer Reports who have used a cable, internet, or phone service provider in the past two years said they experienced unexpected or hidden fees. Unsurprisingly, 96 percent of those who had experienced hidden fees found them annoying. (To the other 4 percent: Are you OK?) We've been here before. In 1990, a similar crisis of consumer confidence prompted one Cabinet secretary to decry that "as consumers shop they encounter confusion and frustration." He said the market had become "a Tower of Babel, and consumers need to be linguists, scientists and mind readers to understand the many labels they see." While this diagnosis could apply almost word-for-word to today's broadband market, then-Secretary of Health and Human Services Louis W. Sullivan was talking about the grocery store. The solution then offers a ready-made formula for how the incoming Biden administration can help consumers now: add a label. Before regulatory changes in the late 1980s and early 1990s culminating in the 1994 adoption of the now-iconic Nutrition Facts panel, consumers were faced with a variety of hard-to-understand food labels peddling often-misleading information. While labels were required to list calories, serving sizes, and other nutritional information, including such a label was voluntary except when a company made nutritional claims about a food (such as "low in fat" or "high in vitamins"), or a food contained added nutrients. Without standards for what nutritional claims actually meant, and with no uniform nutrition label with which to compare products, consumers were left to decipher labels that were, according to the nonprofit Institute of Medicine, "at best, confusing and, at worst, deceptive economically and potentially harmful." Today, it's difficult to imagine not having the ability to read straightforward facts about the nutrition content of our food and comparison shop between competing products. The same could be true for broadband. As far back as 2010, our organization has been advocating for the adoption of a broadband nutrition label. In fact, labeling is such a common-sense measure that it has been adopted in the broadband context before. In 2016, the FCC and the Consumer Financial Protection Bureau together rolled out their version of the "broadband nutrition label." "Broadband Facts" resembles Nutrition Facts, emulating a disclosure method the American public is already familiar with. It breaks down a plan's cost and performance, including all additional fees and taxes, so that people don't have to dig through complicated terms of service and contracts to find simple information.

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