FCC scraps Biden-era “passthrough” fee-by-fee label rule after ISPs argued it was too hard
Decision lets ISPs stop itemizing discretionary monthly passthrough fees on broadband labels, shifting how consumers compare true prices.

The FCC voted to eliminate a Biden-era requirement that Internet service providers list all “passthrough” fees on easily accessible broadband price labels. For decision-makers, it changes pricing transparency mechanics and refocuses the compliance burden on how bills get communicated.
The Federal Communications Commission voted today to end a Biden-era rule that forced ISPs to list every “passthrough” fee on broadband price labels. The rule was meant to stop “bill shock” by making it easier for consumers to compare advertised prices, because providers were required to “itemize on the label all discretionary monthly fees that the provider passes through to the consumer.”
In plain terms: instead of letting ISPs show one low number and then tack on a menu of fees later, the FCC required fee-by-fee disclosure in a place customers could actually see before signing up. That is why ISPs complained. They argued that listing all those passthrough fees was too burdensome and too complex, especially because those fees reflect choices ISPs make about what they charge and how their bills are structured.
This is not a random paperwork tweak. It is a direct attack on one of the few remaining mechanisms designed to make advertised broadband pricing comparable across providers. Broadband is an industry where marketing often relies on a low headline price, while the eventual monthly bill depends on a stack of add-ons. The FCC rule tried to ensure that the stack showed up upfront on the label, so consumers could compare apples to apples. Ending the label itemization requirement shifts the industry back toward a world where the label may look cleaner, while the real cost migrates to the fine print of monthly billing and plan terms.
The FCC’s reasoning, as reflected in the rule and its rollout, is about consumer information and churn-inducing surprises. The FCC updated broadband-label rules in 2023, requiring the label to include all “discretionary monthly fees” that are “passed through to the consumer.” That wording matters because it distinguishes between mandatory charges and those that are effectively optional or provider-selected. The idea was to capture the kinds of fees ISPs often use to make the advertised number lower while still charging more when the subscriber’s bill arrives.
ISPs pushed back hard on the mechanics. They said that having to list every passthrough fee individually created a burden and complexity problem. Under the label framework, the operational burden is not just data gathering. It is also packaging that data into a consumer-facing format that stays accurate as fees change. If fee schedules evolve, the label needs to evolve too, or providers risk misleading disclosures. From an operator standpoint, that is a compliance headache layered on top of marketing cycles.
A few weeks ago, FCC Chairman Brendan Carr proposed a way to reduce that burden by allowing ISPs to display passthrough fees in an aggregate “up to” amount instead of listing them all individually. The direction of travel is clear: less granularity on the label, more simplification for providers. Today’s FCC vote eliminates the Biden-era requirement entirely, meaning ISPs will no longer have to list all of their passthrough fees on the easily accessible broadband price labels under the prior standard.
Strategically, this move gives ISPs more freedom to advertise an artificially low price and then charge additional fees on the subscriber’s monthly bill, because the label no longer functions as the universal fee ledger. The Ars Technica description frames what ISPs wanted: instead of “advertising accurate prices,” they can advertise low headline prices and add fees later. For consumers, that likely means less direct comparability at the moment they shop. For executives and boards, it means a shift in where transparency friction lands.
Second-order effects can show up quickly in customer acquisition and regulatory risk management. When labels stop doing the heavy lifting, ISPs may need to strengthen alternative disclosure points, like plan pages, order flows, and billing summaries, to avoid complaints and to protect conversion rates when customers feel surprised. At the same time, regulators may look for new ways to ensure consumers can still estimate their true monthly cost before committing. Even if today’s vote removes this specific label requirement, the policy intent behind preventing bill shock has not disappeared. It just changes the battlefield.
Bottom line: the FCC has ended a requirement that forced ISPs to itemize discretionary monthly passthrough fees on broadband labels. If you are an executive in telecom, that affects how your pricing information is presented, how your marketing communicates value, and how compliance teams plan for changing fee structures. The question now is not whether fees exist. It is whether customers can see the fees early enough to make meaningful comparisons, before sales momentum (and switching costs) take over.
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