The Broadband Nutrition Label Is a “Long Overdue, Common-Sense Tool for Consumers,” Says OTI

Last week, major internet service providers began to roll out broadband nutrition labels, which disclose information about the price, ancillary fees, and typical speeds of their broadband service offerings. This standardized format, referred to as a "broadband nutrition label," comes after years of advocacy from OTI, which introduced the concept of such a label in 2009. Taking inspiration from the nutrition label for packaged food products required by the Food and Drug Administration, OTI played a pivotal role in the development of a government-endorsed label in 2016. After the previous administration abandoned the label and other broadband transparency requirements, Congress finally directed the FCC to create a mandatory label as part of the Infrastructure Investment and Jobs Act in November 2021.

Findings from OTI's 2020 Cost of Connectivity report reveal that U.S. internet providers frequently obscure crucial service and pricing details. The label brings essential transparency to the often convoluted and opaque landscape of internet service. Research has consistently shown that ISPs tack on hundreds of dollars in concealedfees to the typical customer's bill, and claim advertised speeds much faster than actual service performance. Going forward, we also expect that the additional transparency requirements in the FCC's proposed order to reclassify broadband internet as a Title II service will provide information that can improve the labels.

The following quote can be attributed to Chhaya Kapadia, Chief of Staff at New America's Open Technology Institute:

"This new broadband nutrition label is a long overdue, common-sense tool for consumers-one that will both help consumers understand the cost of their internet and make it much easier for them to compare prices so they can find the options that best suit their needs.

"This kind of transparency also makes a real difference to the many Americans for whom affordability remains a criticalbarrier to broadband access. Having a clear picture of your expenses is an important part of how low-income households canmaintain consistent connectivity.

"People deserve to know what they're paying for-and this new broadband nutrition label provides useful information they need."

Related Topics