We've all experienced the difficulty of purchasing a new phone plan. Even shoppers entering the store may have difficulty understanding what they're signing up for and how much they'll pay each month.
The government now requires wireless companies to label their phone plans.
“The FCC came up with the idea a few years ago to come up with a way to make it easier for consumers to understand the information they were hearing from their broadband providers,” said Verizon's Steve Van Dinter.
He said the new label is similar to nutrition labels on food products, so it's already familiar to consumers. Easy to read and understand.
“At the top you'll see your monthly fee,” Van Dinter explains. “And as you move down, you'll see if there are any additional fees or modified terms.”
Verizon has already used the label by the FCC's April 10 deadline. You can find it on his website and in stores on Verizon.
Each representative has a tablet that displays labels to help customers decide on a plan. The FCC requires that labels be visible and available to consumers at all points of sale.
Consumers often sign up for a plan at a certain price and are shocked to find out it's just an introductory price, bumping up their phone bill by as much as $50 a month. Your broadband label will detail these terms along with all fees and taxes.
“The top part, the $80 plus surcharges you saw, those discounts aren't included, so this is the maximum amount you'll see on your bill,” Van Dinter said. “So you'll see the discount in this section and it'll be deducted from the top.”
Another important part of a broadband label is information about the upload and download speeds offered by the plan.
Van Dinter said the labels are available online and can be printed to help consumers compare prices and plans across all carriers.
“And what you can do is look at these labels side-by-side with the provider you're thinking of doing business with and see what you're getting and what you're paying.”
If consumers don't see the labels displayed in stores or on websites by April 10, they should file a complaint with the FCC.
The April deadline applies to major wireless carriers such as Verizon, AT&T, and T-Mobile.
Small carriers (those with fewer than 100,000 customers) have until October to comply with FCC requirements.
