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Legislation Introduced Forcing Cable Companies to Disclose Hidden Fees

U.S. Rep. Jeff Van Drew (R-2nd)

By Press Release

WASHINGTON – U.S. Rep. Jeff Van Drew (D-2nd) has co-sponsored the Truth-In-Billing, Remedies, and User Empowerment over Fees (‘TRUE Fees’) Act, legislation that would require cable companies to advertise the total price of a service to includes all fees. 
According to a release, the bill would also allow customers to end their contract without early termination fees if the provider increases fees during the term of the contract, prevents arbitrary price hikes on equipment fees unless there is actually an improvement made to the equipment, and prohibits forced arbitration clauses for wrongful billing errors.
According to Consumer Reports, on average, the cable industry generates close to $450 per year per customer from company-imposed fees, adding up to more than $28 billion per year for cable companies. The average cable bill contains more than a dozen line-item charges which comprise about 24 percent of the base package price to the average monthly cable bill.
“In South Jersey, as in many places around the country, we only have one cable company to choose from so there is no competition and therefore no incentive for good service, programming or competitive pricing,” stated Van Drew. “To make matters worse, advertised prices for monthly service are often deceptive as they don’t typically include the full costs that consumers actually end up paying. Disclosure of the full monthly costs that consumers pay is the first step to ensuring that cable companies stop taking advantage of consumers.” 
 
 

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