Marking the latest move in President Joe Biden’s campaign against so-called “junk fees,” the Federal Communications Commission on Tuesday announced an effort to eliminate early termination and billing cycle fees for TV video services. 

What You Need To Know

  • The Federal Communications Commission on Tuesday announced an effort to eliminate early termination and billing cycle fees for TV video services
  • The move marks President Joe Biden's latest effort to crack down on so-called "junk fees" -- hidden or unexpected costs that show up at the end of purchases
  • If adopted, Tuesday's rule would prohibit cable operators and direct broadcast satellite service providers from charging a fee if a customer ends a service contract early

“My Administration just announced a proposed rule that would ban early termination fees for cable and satellite TV,” Biden wrote on X, the platform formerly known as Twitter. “Companies shouldn't lock you into services you don't want with large fees. It's unfair, raises costs, and stifles competition.” 

In a press release on Tuesday, the FCC Chairwoman Jessica Rosenworcel noted the proposed rule, if approved by the full commission, would seek to do two things: enforce protections banning cable operators and direct broadcast satellite service providers from charging a fee if a customer ends a service contract early and prohibit such operators and providers from charging a user for a full month or billing cycle if they cancel in the middle of the period. Instead, the companies would have to provide customers with prorated credit or a rebate for the rest of the days in the month or billing cycle. 

“TV video service subscribers may terminate service for any number of reasons, including moving, financial hardship, or poor service,” Tuesday’s press release read. “Early termination fees require subscribers to pay a fee for terminating a video services contract prior to its expiration date, making it costly for consumers to switch services during the contract term.” 

The administration is also arguing such a move will help competition in the media market by giving Americans more purchasing power and facilitating consumer choice. 

“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,” Rosenworcel said in a statement. 

The proposal will be voted on by the commission on Dec. 13, according to the FCC. 

Since this year’s State of the Union address, the president has sought to crack down on what he has branded “junk fees” – hidden or unexpected costs that show up at the end of purchases on things like concert tickets, car rentals or hotel rooms. 

For months Biden has highlighted proposed rules to tackle such surprise fees in a range of industries, including venue tickets, short-term health insurance plans and retirement financial advising just last month. 

“When you come from a middle class family like I did, the thing that makes you the angriest is when you’re taken advantage of, I mean it,” Biden said when announcing the financial advising rule in October. “These junk fees are hidden charges that companies sneak into your bill and make you pay more just because they can.”

Charter Communications, the parent company of Spectrum News, is a cable and broadband provider.