News FCC votes to ban termination fees for cable and satellite services

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WASHINGTON — The Federal Communications Commission on Wednesday voted to pass a measure banning cable and satellite companies from charging early termination fees.

“Consumers are tired of these junk fees,” FCC Chairwoman Jessica Rosenworcel said before casting the deciding vote at an open commission meeting.

“They now have more choices when it comes to video content but these friction-filled tactics to keep us subscribing to our current providers are aggravating and unfair,” Rosenworcel added. “So, today we kick out a rulemaking to put an end to these practices.”

The agency first announced the proposal in late November to force cable and direct broadcast satellite providers to drop fees for canceling services before the end of a contract period.

The rule will also require service providers to issue a prorated credit or rebate to customers for days remaining in the billing cycle after cancellation.

Two out of four commissioners voted against the measure.

 
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