WASHINGTON - U.S. Senator Amy Klobuchar (D-MN) sent a letter to the Chairwoman of the Federal Communications Commission (FCC), Jessica Rosenworcel, to urge the FCC to finalize rules to prohibit early termination and billing cycle fees imposed on subscribers by cable operators and direct broadcast satellite service providers.
“Competitive markets work best when consumers have the ability to make the best decisions for themselves and their families,” wrote Klobuchar. “I am pleased the FCC has voted to advance rules to prohibit these billing practices, including early termination fees and billing cycle fees, that penalize subscribers for terminating video service or switching providers. I strongly urge the Commission to adopt these rules and create a fairer marketplace for consumers.”
Senator Klobuchar is a leader in pushing for stronger consumer protections across our economy.
In December 2023, Klobuchar worked with Senator John Cornyn (R-TX) to introduce the Fans First Act, which would help address flaws in the current live event ticketing system by increasing transparency in ticket sales, protecting consumers from fake or dramatically overpriced tickets, and holding bad actors who engage in illegal ticket sale practices accountable.
In July 2023, Klobuchar and Senator Jerry Moran (R-KS), co-chairs of the Senate Travel and Tourism Caucus and members of the Senate Commerce Committee, introduced the bipartisan Hotel Fees Transparency Act. This legislation will improve transparency for consumers by requiring anyone advertising a hotel room or short-term rental to clearly show up front the final price a customer will pay to book lodging.
In February 2023, Klobuchar joined Senator Ed Markey (D-MA), Majority Leader Chuck Schumer (D-NY), and Senator Richard Blumenthal (D-CT) in introducing the Families Fly Together Act, legislation to prohibit airlines from imposing any monetary charges on families that want to sit together during a flight.
Full text of the letter is available HERE and below:
Dear Chairwoman Rosenworcel:
I write to urge the FCC to finalize rules to prohibit early termination and billing cycle fees imposed on subscribers by cable operators and direct broadcast satellite service providers.
The FCC receives hundreds of complaints from consumers each year about billing practices, and Minnesotans have repeatedly contacted my office about unexpected price increases and high fees on their cable and satellite bills. In particular, early termination fees, which require subscribers to pay a fee for terminating a video services contract prior to its expiration date, and billing cycle fees, which require subscribers to pay for a complete billing cycle even if the subscriber terminates service prior to the end of that billing cycle, place an undue burden on consumers.
Due to circumstances outside one’s own control — like moving to a new home or discovering that the quality of service is poorer than expected — subscribers often need to end their longterm television contracts early. They may also find that their plan offers more channels than needed or be surprised by a bill that, after hidden fees are added, raises the price of service beyond their budget.
These fees make it costly for subscribers to switch services during the contract term and force consumers to pay for services they choose not to receive. This can place financial strain on subscribers and limit competition and consumer choice.
I have long fought against early termination fees. During my first year in office, I introduced the Cell Phone Consumer Empowerment Act to place limits on early termination fees in wireless contracts. The following year, I testified at an FCC hearing with experts on the use of early termination fees by communications service providers.
Competitive markets work best when consumers have the ability to make the best decisions for themselves and their families. I am pleased the FCC has voted to advance rules to prohibit these billing practices, including early termination fees and billing cycle fees, that penalize subscribers for terminating video service or switching providers. I strongly urge the Commission to adopt these rules and create a fairer marketplace for consumers.
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