Early termination fees for cable, satellite TV subscribers: Klobuchar urges FCC ban

SUPERIOR, WISCONSIN - JANUARY 25: Sen. Amy Klobuchar (D-MN) speaks about funding for the I-535 Blatnik Bridge before a visit by U.S. President Joe Biden at Earth Rider Brewery on January 25, 2024 in Superior, Wisconsin. Biden touched on his economic (Getty Images)

U.S. Sen. Amy Klobuchar is encouraging the Federal Communications Commission (FCC) to not allow early termination fees for cable and satellite subscribers. 

In a press release Friday, Klobuchar, a Democrat from Minnesota, said she sent a letter to the chairwoman of the FCC, Jessica Rosenworcel, pushing for the FCC to finalize rules to prohibit cable and broadcast satellite providers from adding early termination and billing cycle fees to subscribers. 

Early termination fees require subscribers to pay for ending their services with their provider before its expiration date, Klobuchar said. Billing cycle fees have subscribers pay for a whole billing cycle even after they have terminated the service. 

Klobuchar states in her letter that the FCC gets hundreds of complaints from consumers each year. She continued by saying Minnesotans have consistently contacted her office about unexpected price increases and high fees on their cable and satellite bills. She also cites these fees can add a financial strain on subscribers, limit competition and reduce consumer choice. 

Klobuchar's full letter to the FCC: 

"I write to urge the FCC to finalize rules to prohibit early termination and billing cycle fees imposed on subscribers by cable operators and direct broadcast satellite service providers.

"The FCC receives hundreds of complaints from consumers each year about billing practices, and Minnesotans have repeatedly contacted my office about unexpected price increases and high fees on their cable and satellite bills. In particular, early termination fees, which require subscribers to pay a fee for terminating a video services contract prior to its expiration date, and billing cycle fees, which require subscribers to pay for a complete billing cycle even if the subscriber terminates service prior to the end of that billing cycle, place an undue burden on consumers.

"Due to circumstances outside one’s own control — like moving to a new home or discovering that the quality of service is poorer than expected — subscribers often need to end their longterm television contracts early. They may also find that their plan offers more channels than needed or be surprised by a bill that, after hidden fees are added, raises the price of service beyond their budget.

"These fees make it costly for subscribers to switch services during the contract term and force consumers to pay for services they choose not to receive. This can place financial strain on subscribers and limit competition and consumer choice.

"I have long fought against early termination fees. During my first year in office, I introduced the Cell Phone Consumer Empowerment Act to place limits on early termination fees in wireless contracts. The following year, I testified at an FCC hearing with experts on the use of early termination fees by communications service providers.

"Competitive markets work best when consumers have the ability to make the best decisions for themselves and their families. I am pleased the FCC has voted to advance rules to prohibit these billing practices, including early termination fees and billing cycle fees, that penalize subscribers for terminating video service or switching providers. I strongly urge the Commission to adopt these rules and create a fairer marketplace for consumers."