FCC Delays Law Banning Your ISP From Charging You 'Rental Fees' For Hardware You Already Own

from the you're-not-helping dept

For the last few years, broadband customers have complained that Frontier Communications, the nation's third-biggest telco, has been charging its customers a $10 per month rental fee for modems they already purchased and own. Normally, you're supposed to be able to buy your own modem instead of paying your ISP a rental fee upwards of $10 per month. To nab some extra dough from captive customers, Frontier basically decided to charge its customers a rental fee anyway, giving them a polite, though giant, middle finger when they complained.

And because the Trump FCC is a glorified rubber stamp for the industry's biggest players, consumers who complained to the agency received little more than a glassy eyed stare.

Fast forward to last January when the problem was fixed, shockingly enough, by the US Congress. A massive US government spending bill approved by Congress and signed by President Trump (who I'd all but guarantee didn't understand the scope of what he was signing) not only included some updates to the Communications Act cracking down slightly on bullshit cable TV fees, but also included a little noticed provision that formally bans the nonsense Frontier has been engaged in.

Here's the wrinkle. While that law was supposed to take effect this month, a clause included in the measure gave the FCC the right to delay the restriction by six months. So that's precisely what the FCC did. And the FCC justified the move by claiming that the pandemic simply made it too onerous for a big ISP to stop ripping people off:

"As the nation tackles the COVID-19 pandemic, multichannel video programming distributors (MVPDs) and providers of fixed broadband Internet access service are among the entities that are integral to the Commission's ongoing, nationwide effort to keep Americans informed and connected during this national emergency. So that these service providers may focus their resources on this critical effort, we provide appropriate flexibility for MVPDs and providers of fixed broadband Internet access service to fulfill their obligations under the Television Viewer Protection Act of 2019 (TVPA)... we find that good cause exists for granting a blanket extension of section 642's effective date until December 20, 2020."

Several things here. One, keep in mind this FCC did absolutely nothing for nearly two years as a major telecom monopoly charged users $10 for absolutely nothing. And the very first time they take substantive action on the issue, it involves delaying implementation of a law that actually helps. This is, for those playing along at home, the kind of "hands off approach" to regulation that the FCC loves to (falsely) claim spurs investment and innovation. In reality, finding creative new ways to rip off captive customers is as innovative as US telecom tends to get.

Two, there's really nothing about a pandemic that would make it difficult to stop charging people bullshit fees. Three, the FCC's effort to "keep people connected" during this crisis consists of an entirely voluntary, temporary pledge to not kick users offline during the pandemic. It's a pledge many ISPs are simply ignoring, knowing full well the FCC just gutted much of its authority over telecom as part of the net neutrality repeal.

Keep in mind the only reason anybody is doing anything about this is thanks to a law that required a miracle to pass. More often than not, a campaign cash slathered Congress blocks such legislative fixes unless they're buried in broader legislation (which was the case here). And because the FCC just neutered its authority over telecom at lobbyist behest, there's a universe of issues just like this the FCC can't and won't address. Keep in mind the Trump FCC has even been trying for several years to ban states from protecting consumers' privacy (again at telecom industry behest). And because there's little to no competition in many broadband markets, there's no "market solution" here either. Surely you can see the problem forming here?

As of now, this particular law cracking down on bogus cable fees and bullshit surcharges won't take effect until December. Even then, you'd need this FCC to actually enforce it, and there's been absolutely zero indication so far this agency is capable of standing up to telecom monopolies.

Filed Under: fcc, modems, rental fees


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  • This comment has been flagged by the community. Click here to show it
    identicon
    Naughty Autie, 8 Jun 2020 @ 6:58am

    I know this is unrelated, but...

    COVID-19 Symptoms.

    • Feeling run down
    • Headache
    • Pain behind eyes
    • Dry cough
    • Aphasia
    • Palilalia
    • Groaning and growling
    • Sudden craving for human flesh
    • Physical alterations, any of which may occur post mortem

    Further note: The laboratory that originally released this novel coronavirus belongs to a Chinese-American co-operative venture named Umbrella Corporation, which has previously been implicated in major viral outbreaks in rural Spain and the Midwestern United States, amongst other regions.

    The vast majority of this post consists of misinformation, which should not be believed by anyone. Arse covered.

    Copyright © 2020 Naughty Autie. Individuals and groups are free to copy and share this work for all purposes except large-scale distribution, subject to credit being given and any derivatives being released under the same or a similar licence. All other rights reserved.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 8 Jun 2020 @ 7:29am

    It really comes to something when you have to include it in law to stop you stealing your customer's money.

    reply to this | link to this | view in chronology ]

    • identicon
      Anonymous Coward, 8 Jun 2020 @ 8:28am

      Re:

      Unrestricted capitalism is a thing to behold.

      reply to this | link to this | view in chronology ]

    • icon
      That Anonymous Coward (profile), 8 Jun 2020 @ 9:03am

      Re:

      falls over laughing

      Have you met Mr. Pai??
      He never puts anything in the law that will make the corporate sponsors mad.
      While they might suggest this not be done, one should understand that they will codify into law some other fee they are allowed to collect no matter what.

      reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 8 Jun 2020 @ 7:34am

    and i'll bet a dime to a dollar that unless a customer asks for the fees to stop and any rebate due, they'll keep being charged!

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 8 Jun 2020 @ 8:03am

    Can a customer file a civil suit?

    reply to this | link to this | view in chronology ]

    • identicon
      Anonymous Coward, 8 Jun 2020 @ 8:12am

      Re:

      It's just not worth it. I believe in Canada unless you're going to get tens of thousands of dollars, the case will cost more that you can hope to receive. Even with small claims (assuming a small claims court will even hear the case) it's going to take a lot of time and effort (and likely money, if you retain a lawyer, which you'll probably need to take on one of these corporations), more than the stolen fees are worth.

      I suspect the only way this would come to court would be if an enterprising, hungry young lawyer drummed up a class action. The trouble is that the individual amounts are so, comparatively, tiny and the victims so numerous, that very few lawyers could afford to pursue such an action and even fewer could profit (compared to the business they would have to give up), even if they kept all the winnings in the case, even assuming they won in the first place. Remember, there are many ways to win a court case besides being on the legally correct side.

      reply to this | link to this | view in chronology ]

      • identicon
        Anonymous Coward, 8 Jun 2020 @ 8:23am

        Arbitrate it.

        Well, the ripees have probably been forced into arbitration requirements, so if the contract requires that the ripper pay arbitration costs up-front, then a mass of coordinated arbitrations should wind up costing the ripper more than they can fleece from the ripees.

        Nothing more than concerted action will have the desired effect, though.

        reply to this | link to this | view in chronology ]

    • identicon
      Anonymous Coward, 8 Jun 2020 @ 9:11am

      Re:

      I would imagine Frontier has the "forced arbitration" clause in their contracts to prevent any civil suits, including class action suits.

      reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 8 Jun 2020 @ 10:34am

    FTFY

    "...,and there's been absolutely zero indication so far this agency is capable of standing up to telecom monopolies."

    Should read:
    "...,and there's been absolutely zero indication so far this agency is willing to stop being bought off by telecom monopolies."

    reply to this | link to this | view in chronology ]

  • icon
    That One Guy (profile), 8 Jun 2020 @ 11:49am

    'Look, six more months of money, so keep paying us okay?'

    The only part that I don't get is why there's the option to 'extend' the ability for the companies to rob people in the first place. It was a problem when it was written, it had been a problem for years, other than trying to reduce the heat they might get from the companies in question what was the point of the change not kicking in immediately?

    I guarantee you that if a poor person found a novel yet legal way to rob a company and told others around them the fix would not include a 'this can be delayed for half a year' clause, it would kick in immediately.

    Still, whatever the case I look forward to the end of the year when(not if) Pai finds some other excuse not to apply the law or punish violations of it, because I'm sure it will be at least somewhat creative.

    reply to this | link to this | view in chronology ]

  • icon
    ECA (profile), 8 Jun 2020 @ 12:40pm

    About ready..

    To call up India and see if I can get a ISP connection there..
    Even China, has some better laws then the USA, recently.

    Lets say it this way..
    As things are going, corps are trying to GRAB every penny they can, before someone STOPS this BS.
    from ESPN for everyone, when only 40% really want it.
    Charging for hardware you aint using.(might as well pay for that Gas meter outside)
    Enron, look it up.
    I still liked it when the state ran the utilities, insted of the PUC stomping it feet trying to get them to do the right things..

    Anyone notice the price of Fuel/gas?? Wonder about that $1 savings, only because we have a Pandemic..Lets keep it going. It wont last long.

    reply to this | link to this | view in chronology ]

  • identicon
    Richard Bennett, 8 Jun 2020 @ 8:53pm

    Oh god yes! Fuck me, Pai daddy. I'm going to cum!

    reply to this | link to this | view in chronology ]


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