FCC investigating why broadband data caps are still a thing

Are you one of the many American consumers who have to ration your internet usage due to your service provider's broadband data caps? The Federal Communications Commission (FCC) has heard from consumers just like you and are now going to investigate these data caps.

On Wednesday, the FCC announced that it was opening a formal inquiry into the "impacts of internet services usage limits and fees." The inquiry will look into broadband data caps and how they affect consumers and competing companies alike.

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“For most people in the United States, rationing their internet usage would be unthinkable and impractical," said FCC Chairwoman Jessica Rosenworcel. "But, for millions, limitations on how much data they can use online is a constant concern. And many are not happy about it."

What are broadband data caps?

For those unfamiliar with the practice, some internet service providers (ISPs) sell plans that limit how much data they can use per month. These are often the lower-cost plans, so the issue typically affects low-income households. However, many others in various economic situations are stuck with similar plans too.

Furthermore, these data cap plans often charge for data overage, which in turn can even make these plans unaffordable for some.

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As numerous industries have pivoted to streaming – from movies to video games – over physical media, these data caps become more and more of a concern from those forced to deal with them. The changes that rapidly occurred during the COVID-19 pandemic, such as live video classes for children over Zoom, further exacerbated the issue.

How data caps affect everyday consumers

On the same day that the FCC announced this inquiry, the agency also releasedhundreds of stories from consumers about how these data caps impact their daily lives. There's the family in Arkansas who has to take their kids to use public WiFi after school to do their homework so they don't go over their data cap. There's the senior citizen in Nevada who is stuck at home due to disability and has to avoid video chatting with loved ones for half the month so they don't get hit with overage charges.

“Restricting consumers’ data can cut off small businesses from their customers, slap fees on low-income families, and prevent people with disabilities from using the tools they rely on to communicate," said FCC Chairwoman Rosenworcel. "As the nation’s leading agency on communications, it’s our duty to dig deeper into these practices and make sure that consumers are put first.”

Earlier this year, the FCC officially required ISPs to attach "nutrition labels" to the plans that the offer customers. The labels require that ISPs provide easily accessible information about how much each plan costs, what additional fees could hit customers, how much data comes with the plan, what broadband speeds to expect, and more.

The full disclosure that these nutrition labels bring was certainly a welcomed development. Now the FCC is taking further steps to see if the plans themselves are an issue as well.

What you can do

The FCC wants to hear from more consumers and businesses about the affects data caps have on them. To share your story, fill out the FCC's Data Caps Experience Form.