Cable lobby and Republicans fight proposed ban on early termination fees

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The Federal Communications Commission has taken a step toward prohibiting early termination fees charged by cable and satellite TV providers. If given final approval, the FCC action would also require cable and satellite providers to provide a prorated credit or rebate to customers who cancel before a billing period ends.

The new rules are being floated in a Notice of Proposed Rulemaking (NPRM) that the FCC voted to approve yesterday in a 3–2 vote, with both Republicans dissenting. The NPRM seeks public comment on the proposed rules and could lead to a final vote in a few months or so.

"Today's action proposes to adopt customer service protections that prohibit cable operators and DBS (Direct Broadcast Satellite) providers from imposing a fee for the early termination of a cable or DBS video service contract," the FCC said. "Additionally, the NPRM recommends the adoption of customer service protections to require cable and DBS providers to grant subscribers a prorated credit or rebate for the remaining whole days in a monthly or periodic billing cycle after the subscriber cancels service."