Have you ever had an ISP charge you a rental fee for a modem, even after you bought it? A new U.S. law is putting an end to that . As Ars Technica notes , the Television Viewer Protection Act (TVPA), which took effect on December 20, prohibits Internet service providers (ISPs) and television providers from charging rental fees for equipment owned by their customers , whether it's a modem or a cable box.
The law was passed in December 2019 and was originally scheduled to take effect on June 20, 2020. However, Congress authorized the Federal Communications Commission (FCC) to delay its implementation, as the COVID-19 made achieving the goal within the original timeline unfeasible.
Many ISPs have already changed their policies, but this law will force others to change their behavior. For example, Frontier Communications, a leading rural internet service provider with operations in 26 states in the US, required its customers to buy their own devicesto avoid arbitrary rental fees. The provider told Ars Technica in June that it “intends to comply with the requirements when the law goes into effect,” meaning it intended to continue charging rental fees until it was no longer legally able to do so. The company also told Ars Technica that it is now “in compliance” with the TVPA, but cautioned that it cannot offer support to customers who use their own equipment.
In addition to banning rental fees, the TVPA also requires ISPs to be more transparent about how they charge customers, so there are no more hidden fees or sneaky price increases. In addition, the law prohibits penalties for customers who cancel their TV service within 24 hours and requires TV providers to give customers a detailed breakdown of all monthly charges before they sign a contract. Of course, companies can still raise their prices whenever they want, even for customers who have been on a contract for years. At least now it won’t be a nasty surprise on customers’ monthly bills when they do
While these transparency requirements unfortunately do not extend to ISPs at this time, consumer advocates are already pressuring Congress to expand the law's reach.
Public Knowledge, a Washington, D.C.-based nonprofit that advocates for consumer rights in the digital marketplace, said in a blog post: “We hope the FCC will enforce this law and ensure that pay-TV providers disclose their total prices in a clear and concise manner. Congress should also extend the requirements to companies that provide internet services or any other services that charge consumers hidden fees. Ensuring these things are in place would make the holiday season much more enjoyable.”
