Biden targets early termination fees for cable and satellite TV in his latest ‘junk fee’ proposal – so what does this mean for your service?

The Biden administration has proposed a ban on cable and satellite TV providers from charging consumers early termination fees to end their contracts.

It would require providers to eliminate such charges and provide customers with a prorated refund for the remaining days of service in their billing cycle.

The proposed change was submitted by the Federal Communications Commission (FCC), which will hold an initial vote on December 13, the agency said in an announcement.

The move is part of the White House’s larger crackdown on “junk fees” following President Biden’s 2021 executive order to promote competition in the U.S. economy.

President Biden said of the fees: “It is unfair, increases costs and stifles competition. We’re doing something about it.’ He will be photographed on Tuesday

Early termination fees can vary, but are usually based on a specific amount, such as $40, multiplied by the number of months a subscriber has left in their contract at the time of cancellation.

“When companies charge customers for early termination, it limits their freedom to choose the service they want,” FCC Chairman Jessica Rosenworcel said in a statement Tuesday.

“In an increasingly competitive media marketplace, we must make it easier for Americans to use their purchasing power to drive innovation and expand competition within the industry,” she added.

But the proposal was not without opposition. Republican FCC Commissioner Brendan Carr argued that this would “give the federal government a roving mandate to micromanage almost every aspect of the way the Internet functions.”

The FCC’s proposed change would require providers to eliminate such fees and give customers a prorated refund for the remaining days of service in their billing cycle.

According to analysts, cable and satellite TV companies lost 1.8 million subscribers in the second quarter of this year

The president supported the proposal, writing on X, formerly Twitter: “Companies shouldn’t lock you in with high fees for services you don’t want.

‘It is unfair, increases costs and stifles competition. We’re doing something about it.’

If the change is implemented, it would be a major blow to cable and satellite TV companies, which lost 1.8 million subscribers in the second quarter of this year, analysts at research institute MoffettNathanson noted in a report. September report.

In June, the FCC granted initial approval to a proposal that would require cable operators and satellite providers to clearly and conspicuously specify the “all-in” price in promotional materials and invoices.