FCC Looks to Ax MVPD Service Early-Termination Fees, Take Further Robocalls Action

Early-termination fees for canceling cable or direct broadcast satellite service are joining "all-in" video service pricing in the FCC's cross-hairs for elimination with an NPRM on the agency's December agenda, Chairwoman Jessica Rosenworcel said Tuesday. Also on tap for the Dec. 13 meeting are further efforts to crack down on robotexts, an area that could prove controversial and an update to data breach notification rules. In her note, Rosenworcel wrote the agenda would also include an NPRM about requiring smartphone compatibility with hearing aides, an order implementing provisions from the 2023 Low Power Protection Act to create a window to allow some LPTV stations to transition to Class A status, rules aimed at streamlining the approval process for pole attachment applications and administrative improvement to the Rural Health Care Program.

The MVPD early-termination fees NPRM proposes prohibiting cable and direct broadcast satellite services from levying early-termination fees for service cancellation, the FCC said. It also proposes requiring subscribers receive a prorated credit or rebate for the time left in a billing cycle after cancellation of service. The White House's 2021 competition executive order (see 2107090006) urged the FCC to tackle early-termination fees. Such fees limit consumers' "freedom to choose the service they want," Rosenworcel said. “In an increasingly competitive media market, we should make it easier for Americans to use their purchasing power to promote innovation and expand competition within the industry," she said. The commissioners adopted the all-in video pricing NPRM in June (see 2306200042).

“We’re cracking down on illegal robotexts,” Rosenworcel wrote: “We will consider rules to allow the FCC to ‘red flag’ certain phone numbers and require mobile carriers to block texts from those numbers, in addition to making sure do-not-call list protections also apply to text messaging.” Proposed rules “would also prohibit lead generators, texters, and callers from using a single consumer consent to inundate consumers with unwanted texts and calls, closing a loophole that enables unwanted messages,” she said.

Consumer and public interest groups asked the FCC to get more aggressive in clamping down on illegal and unwanted robotexts, while industry groups and companies urged a more cautious approach, in comments on a March Further NPRM (see 2303160061). In September, a CTIA official said rules targeting robocalls won’t work against robotexts (see 2309200067). This week, Responsible Enterprises Against Consumer Harassment warned against banning lead generation (see 2311200067).

The commission will also consider updates to its 16-year-old data breach notification rules "that would hold phone companies accountable for safeguarding sensitive customer information, while providing consumers new tools to protect themselves in the event that their data is compromised,” Rosenworcel said. In June, the FCC launched a Privacy and Data Protection Task Force that was tasked with targeting breaches (see 2306140075). Commissioners approved an NPRM in December proposing to eliminate the “outdated” seven-business-day mandatory waiting period before notifying customers of a breach and requiring the reporting of inadvertent but harmful breaches to the FCC, FBI and Secret Service (see 2301060057).

Smartphones will be more accessible to consumers with hearing loss via a proposal that tentatively concludes "that a 100% hearing aid compatibility requirement for wireless handset models is an achievable objective and seeks comment on proposals to implement this requirement,” Rosenworcel said.

Class A TV stations deliver a low-power signal but enjoy the signal protections of a full-power station. Rosenworcel wrote Tuesday that the draft item will protect LPTV stations and local programming for underserved audiences, but the LPPA restricts the window to stations that carry three hours per week of local programming in markets of 95,000 households or fewer. In the NPRM stage, the agency also proposed making translators ineligible for the window. LPTV groups have said the restrictions mean most LPTV stations won’t be able to benefit from it. The NPRM also drew numerous comments arguing that the FCC should move away from Nielsen-defined designated market areas (see 2305170044), but the order isn’t expected to take up those proposals.

Commissioners will consider rules aimed at streamlining the approval process for pole attachment applications, Rosenworcel said. The FCC launched a proceeding in 2022 examining costs associated with pole attachments and replacements (see 2206280066). Also under consideration will be "multiple administrative improvements" to the rural health care program, Rosenworcel said.

The December meeting also will consider an Enforcement Bureau item, the agency said.