New Bill to Stop Internet Overcharging

Congratulations, your activism against Time Warner Cable's outrageous Internet pricing schemes last month resulted in legislation today to stop them.

This morning, Congressman Eric Massa (D-N.Y.) introduced the “Broadband Internet Fairness Act,” a law that would give the government explicit authority to prevent broadband providers from overcharging for Internet access.

In April, after intense public pressure from the grassroots, Time Warner Cable shelved its plan to impose excessive Internet fees against those who use the Web for more than e-mail and basic surfing. The public outcry culminated in calls by leading politicians to end the price gouging.

In introducing the bill today, Rep. Massa mentioned the “catastrophic impact” of Time Warner Cable’s overcharging plan. “Volume-based pricing is detrimental to our future as an Internet leader in America,” Massa said. “This would have made it difficult for us to grow in Western New York State.”

The scheme would have forced consumers to pay up to $150 per month for full access to the Internet — an inflated pay-per-byte rate that the company hoped would dampen popular enthusiasm for online video.

But the company only temporarily abandoned the plan and is now launching a customer education process” until the backlash dies down. And other companies, such as AT&T, have been testing their own new billing models.

We don’t want to wait while Time Warner Cable regains its footing and AT&T develops its plans; broadband service providers need to know now that price gouging won’t be tolerated. We joined Rep. Massa and Phil Dampier from StoptheCap.com at a press conference this morning to announce the bill.

Specifically, the bill:

• Requires Internet service providers to submit plans to the Federal Trade Commission, in consultation with the FCC if they intend to move to usage-based billing;
• Prohibits volume-usage plans if the FTC determines that these plans are imposing rates, terms and conditions that are unreasonable or discriminatory;
• Sets up public hearings for plans submitted to the FTC for public review and input;
• Only affects Internet providers with 2 million or more subscribers;
• Imposes penalties for broadband ISPs that ignore these rules.

In a press release today, Rep. Massa said, “Access to the Internet has become a critical part of our economy, and we can't let corporate giants limit the public's access to this important tool.”

Even with Massa’s support, this fight is far from over. Broadband service providers thought they could take the public for a ride, and they won’t give up easily.

But this bill is a testament to the power of the grassroots to influence policy. We convinced Rep. Massa; now, let’s convince Congress.