(Photo by Win McNamee/Getty Images)
OAN’s James Meyers
9:44 AM – Wednesday, November 22, 2023
The Biden administration is proposing a rule for cable customers to not be charged extra fees for leaving their contracts early.
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The Federal Communications Commission (FCC) made the announcement on Tuesday, which would make cable companies and direct broadcast satellite (DBS) providers stop early cancellation fees.
Additionally, it would also require cable and DBS companies to provide their customers a prorated credit or rebate for the remaining days within a billing cycle after cancellation, according to the FCC.
“No one wants to pay junk fees for something they don’t want or can’t use,” FCC Chairwoman Jessica Rosenworcel said in a statement. “When companies charge customers early termination fees, it limits their freedom to choose the service they want.”
“Companies shouldn’t lock you into services you don’t want with large fees. It’s unfair, raises costs, and stifles competition. We’re doing something about it,” President Joe Biden wrote on X, the platform formally known as Twitter, on Tuesday.
My Administration just announced a proposed rule that would ban early termination fees for cable and satellite TV.
Companies shouldn’t lock you into services you don’t want with large fees.
It’s unfair, raises costs, and stifles competition.
We’re doing something about it.
— President Biden (@POTUS) November 21, 2023
This comes after Biden’s July 2021 executive order, which called for ending early termination fees, according to the FCC.
Furthermore, the FCC also proposed “all-in” pricing for satellite and cable providers that way customers can see the total service costs, fees included, up front.
“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,” Rosenworcel said.
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