The FCC Launches a Formal Investigation into Issues Related to Data Caps in Broadband.

The Federal Communications Commission (FCC) has announced the start of a new investigation into data caps in broadband services and their impact on both consumer experience and competition among companies. The FCC is inviting consumers to share their stories about their experiences with broadband services that impose these limits. Additionally, the agency has opened a formal Notice of Inquiry to collect public comments that will help guide its actions regarding data caps.

Jessica Rosenworcel, FCC Chairwoman, emphasized that "restricting consumer data can isolate small businesses from their customers, impose fees on low-income families, and hinder the use of essential communication tools for people with disabilities." She also stated that, as the leading communications agency in the country, it is their responsibility to investigate these practices and ensure that consumers are the priority.

This issue has gained prominence recently, and the FCC had already initiated an inquiry last year regarding the practice of limiting internet access. In April 2024, the agency succeeded in getting Internet Service Providers (ISPs) to offer clear informational labels about their plans, detailing additional fees, discounts, and upload and download speeds. Data caps could face even greater scrutiny as the FCC seeks to restore net neutrality rules, which consider broadband to be an essential service. However, restoring net neutrality has been a complex process, as the agency faces legal challenges from broadband providers.