The charges that cable and satellite tv for pc corporations cost to subscribers for eliminating their service earlier than the top of their contracts can be prohibited underneath a brand new proposal from the FCC.
Chairwoman Jessica Rosenworcel as we speak outlined a proposal that takes goal at video service “junk charges,” according to President Joe Biden’s actions to curb such client levies throughout industries.
Some subscribers who signal contracts with cable and satellite tv for pc operators face paying early termination charges if they need out of the settlement earlier than the expiration date. The businesses put such charges in place to cut back churn.
The FCC proposal additionally would goal necessities that subscribers pay for the whole billing cycle once they finish their service earlier than that date. The proposal would require that the video suppliers grant a pro-rated credit score for the remaining days in a billing cycle. The proposal doesn’t seem to use to streaming companies.
In an announcement, Rosenworcel stated, “Nobody needs to pay junk charges for one thing they don’t need or can’t use. When corporations cost prospects early termination charges, it limits their freedom to decide on the service they need. In an more and more aggressive media market, we must always make it simpler for People to make use of their buying energy to advertise innovation and develop competitors throughout the trade.”
The FCC will vote at its Dec. 13 assembly whether or not to situation a discover of proposed rulemaking for public remark.