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December 18, 2020 10:10 pm

Law Banning 'Rental' Fees For Customer-Owned Routers Takes Effect Sunday

An anonymous reader quotes a report from Ars Technica: Broadband and TV providers will finally be required to stop charging "rental" fees for equipment that customers own themselves, thanks to a new US law that takes effect on Sunday. The bogus fees were outlawed by the Television Viewer Protection Act (TVPA), which was approved by Congress and signed by President Trump in December 2019. The law was originally scheduled to take effect on June 20, but Congress gave the Federal Communications Commission leeway to delay enforcement by six months if the FCC "finds that good cause exists for such an additional extension." The FCC in April granted the six-month delay to ISPs, claiming that providers needed more time to comply because of the coronavirus pandemic. That decision delayed implementation of the new requirements until December 20, 2020. The law's implementation will "put an end to the unconscionable business practice of charging consumers a rental fee for cable modem routers even if consumers do not use them!" consumer-advocacy group Public Knowledge said in a blog post. "This common-sense correction will permit consumers to continue to use their own equipment, and not be forced to pay for something they neither asked for nor needed." [...] The new law, passed as part of a budget bill, creates a "consumer right to accurate equipment charges" that prohibits TV and broadband providers from charging for "covered equipment provided by the consumer." Covered equipment is defined as "equipment (such as a router) employed on the premises of a person... to provide [TV service] or to provide fixed broadband Internet access service." The companies may not charge rental or lease fees in cases when "the provider has not provided the equipment to the consumer; or the consumer has returned the equipment to the provider." The law also includes a right to transparency that requires TV providers to inform customers of the total monthly charges, including all company-imposed fees and a good-faith estimate of all government-imposed fees and taxes, before they enter into a contract. This notice must specify the amount of promotional discounts and when those discounts will expire. The law also gives customers a 24-hour period in which they can cancel new TV service without penalty. The new rule won't prevent TV providers from raising prices on existing customers, even when they're under contract. But the new transparency requirement is a step in the right direction.

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