FCC set to end Biden-era mandate on itemizing ISP passthrough fees

The Federal Communications Commission will vote to scrap a rule that forces Internet service providers to break out every so-called passthrough fee on an accessible broadband price label. The planned action could also reduce how easily consumers can locate those labels.

The FCC plans to allow ISPs to roll passthrough fees into a single "up to" amount. "Rather than continuing to require providers to itemize ‘passthrough fees’ that can vary by location, we allow providers to display such fees in the aggregate, either as a maximum or ‘up to’ amount for the total fees applicable in any location where the service plan is offered, or as the exact total of such fees assessed in a particular location," the FCC draft order said. The document, released last week, would replace the existing itemization mandate with this aggregated option that can cover both government and non-government charges such as utility-pole fees.

During the Biden administration the agency had revised broadband label rules so ISPs must "itemize on the label all discretionary monthly fees that the provider passes through to the consumer." Providers including Comcast objected, arguing that detailing every hidden charge they elected to impose would prove overly complicated.

Price labels will become harder for consumers to find under the planned changes. The forthcoming order lets providers supply links to the labels rather than showing the complete versions in prominent spots on ordering pages and customer account portals. It further permits them to cease publishing the label data in machine-readable spreadsheet format.

Regulators are easing the obligation to deliver price details by telephone. Officials stated the adjustment will "allow phone sales representatives to present label information conversationally, as a summary of key label fields, rather than require verbatim recitation."

Passthrough fees are defined to include nearly any non-tax charge passed to customers. The draft defines them as monthly charges that (1) are imposed by a government entity or third-party infrastructure owner rather than set by the provider itself, (2) represent costs the provider chooses to pass through to consumers rather than rolling them into the base monthly price, and (3) vary by consumer location. Examples cited are state and local right-of-way fees, pole attachment fees imposed by third-party pole owners, and similar charges. The definition explicitly excludes taxes.

Providers commonly promote rates well below what customers ultimately pay each month by adding separate fees they say cover local-government costs. For roughly ten years the FCC has mandated detailed price disclosures precisely because ISPs seldom advertise and bill the identical figure.

The vote is scheduled for later this month with changes taking effect soon after. Work on the revisions dates to October 2025, when the agency released a Notice of Proposed Rulemaking seeking public input. The resulting draft will face a vote at the FCC’s July 22 meeting and become effective 30 days after Federal Register publication. Under Chairman Brendan Carr the Trump FCC has steadily whittled away at requirements imposed under Democrats.