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Last month, the Federal Communications Commission (FCC) proposed updating its regulations for broadband in the US. As part of this effort, the FCC is considering making internet service providers (ISPs) disclose who they are or who they’re paid to be—something like a consumer version of public financial disclosures that corporations have to file on the SEC.
It’s not the first time the FCC has looked into this. In 2015, the Commission’s Enforcement Bureau proposed a similar transparency measure, which, at the time, was said to be part of a wide-ranging effort to protect “net neutrality.” But the proposal never really went anywhere and we’re seeing it come out of the woodwork again this year.
In a statement to Gizmodo, an FCC spokesperson said, “The proposal comes out of an ongoing effort by the Commission’s Enforcement Bureau to assess broadband service providers’ compliance with the Communications Act and the Commission’s own rules.”
The gist of the rules is that if an ISP is paid by a certain company to promote its services, or if the company that pays the ISP has an interest in the ISP’s policies, then the ISP should be required to disclose that relationship in its contracts. This would allow customers to figure out how much of the ISP’s services are being paid for.
“This contract relationship should be evident to consumers,” the FCC’s Enforcement Bureau said. “[It] is necessary for consumers to understand how contracts are structured and the interests of the parties involved in the contracts, including government entities, as they relate to broadband.”
The initiative also explicitly says it’s aimed at addressing concerns about both competition and privacy. In April, a coalition of public interest groups joined in an effort to block FCC Chairman Ajit Pai’s effort to roll back the net neutrality rules, arguing that this proposed rule change threatened net neutrality and other consumer protections.
So why is Pai pushing this again? It could be because the FCC is so dependent on a few large ISPs that the agency has some incentive to consider new rules that can’t be seen as an attempt to limit or chill competition. It could also be because
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