Consumer Reports Finds Consumers Face 'Billing Confusion,' Lack of Competition

Confusing broadband bills and a lack of competition "make it difficult for consumers to budget and compare prices with alternative service options," said Consumer Reports in a report Thursday. The group reviewed more than 22,000 consumer broadband bills and received speed tests from study participants. More than 18,000 bills with an internet price identified had an average monthly cost of high-speed internet was $74.99, the group said, saying bundles, discounts and other fees contribute to billing confusion. Consumer Reports also said the "overwhelming majority of bills" it reviewed "subscribed to the same ISP, or one of just two ISPs." A "large number of consumers" were found to have paid "as much or more for a sub-broadband plan" as those paying for advertised speeds of at least 300 Mbps. "While we expected some confusing bills, we were surprised to see how difficult it was for consumers to understand what they’re paying for and the frequency of hidden fees," said Senior Policy Counsel Jonathan Schwantes: "These findings should alarm policymakers and regulators about the lack of competition in the marketplace and the tactics providers deploy to increase profits.” The group recommended requiring the FCC's forthcoming broadband labels on "every monthly broadband bill" that are machine-readable, and data cap justifications. It also urged the FCC to "reassert its regulatory authority over the broadband internet service industry."