Lower Internet Costs Act
Summary
The Lower Internet Costs Act aims to amend the Communications Act of 1934 by directing the Federal Communications Commission (FCC) to create regulations requiring broadband service providers to state the aggregate price for their services clearly. It also prohibits providers from charging certain fees, enhancing transparency for consumers.
The bill mandates that the FCC establish these regulations within 90 days of enactment. This includes specifying how introductory pricing should be disclosed and what charges must be included in the aggregate price.
Ultimately, the goal is to provide consumers with a clearer understanding of their internet costs and prevent hidden or misleading fees.
Expected Effects
If enacted, the Lower Internet Costs Act will change how broadband providers present pricing to consumers. It will require a single, clear price on bills and in promotional materials, making it easier for consumers to compare services.
Certain fees, such as state cost recovery charges and network maintenance fees, would be prohibited. This could lead to lower overall internet costs for some consumers.
The FCC would be responsible for enforcing these new regulations, ensuring compliance among broadband providers.
Potential Benefits
- Increased transparency in broadband pricing, allowing consumers to make informed decisions.
- Prohibition of certain fees, potentially lowering the overall cost of internet service.
- Clearer disclosure of introductory pricing and future price changes.
- Standardized pricing information, facilitating easier comparison between providers.
- Empowerment of consumers to understand and manage their internet expenses.
Most Benefited Areas:
Potential Disadvantages
- Potential for broadband providers to increase base prices to offset the prohibition of certain fees.
- Possible challenges for the FCC in defining and enforcing the regulations.
- Could lead to providers reducing investment in network infrastructure if revenue streams are impacted.
- May disproportionately affect smaller broadband providers with limited resources for compliance.
- Potential for unintended consequences if regulations are not carefully crafted.
Constitutional Alignment
The Lower Internet Costs Act aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. Broadband internet service falls under this purview as it involves the transmission of data across state lines.
The Act does not appear to infringe upon any specific constitutional rights or freedoms. It focuses on regulating business practices within the telecommunications industry.
By promoting transparency and fair pricing, the Act could be argued to promote the general welfare, as stated in the Preamble of the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).