Many Internet users filed comments asking the FCC to ban data caps. A coalition of consumer advocacy groups filed comments saying that “data caps are another profit-driving tool for ISPs at the expense of consumers and the public interest.”
“Data caps have a negative impact on all consumers but the effects are felt most acutely in low-income households,” stated comments filed by Public Knowledge, the Open Technology Institute at New America, the Benton Institute for Broadband & Society, and the National Consumer Law Center.
Consumer groups: Caps don’t manage congestion
The consumer groups said the COVID-19 pandemic “made it more apparent how data caps are artificially imposed restrictions that negatively impact consumers, discriminate against the use of certain high-data services, and are not necessary to address network congestion, which is generally not present on home broadband networks.
“Unlike speed tiers, data caps do not effectively manage network congestion or peak usage times, because they do not influence real-time network load,” the groups also said. “Instead, they enable further price discrimination by pushing consumers toward more expensive plans with higher or unlimited data allowances. They are price discrimination dressed up as network management.”
Jessica Rosenworcel, who has been FCC chairwoman since 2021, argued last month that consumer complaints show the FCC inquiry is necessary. “The mental toll of constantly thinking about how much you use a service that is essential for modern life is real as is the frustration of so many consumers who tell us they believe these caps are costly and unfair,” Rosenworcel said.
ISPs lifting caps during the pandemic “suggest[s] that our networks have the capacity to meet consumer demand without these restrictions,” she said, adding that “some providers do not have them at all” and “others lifted them in network merger conditions.”
