Today:  US Congress TRUE Act introduced, Department of Justice Files Lawsuit against State of California's Net Neutrality Law 

US Congress TRUE Act Introduced

Congresswoman Anna G. Eshoo (D-CA) introduced the Truth-In-Billing, Remedies, and User Empowerment over Fees (“TRUE Fees”) Act, which would require phone, cable and Internet providers to include all charges in the prices they advertise for service, and provides remedies for consumers when they have been wrongfully charged.  Among other things, the True Fees Act requires cable and Internet providers to include all charges in the prices they advertise for service; allows customers to end their contract without early termination fees if the provider increases fees during the term of the contract; prevents arbitrary price hikes on equipment fees unless there is actually an improvement made to the equipment; and prohibits forced arbitration clauses for wrongful billing errors.  The bill also addresses transparency in e-billing, including content requirements for bills provided in electronic format and would requires 21 day advance notice of certain rate increases.

“Customers deserve to know exactly what they’re paying for when it comes to monthly cable and Internet service bills. Today, they’re sold a service for one price, only to be blindsided by higher bills at the end of the month from tacked on ‘service’ or ‘administrative’ fees,” Rep. Eshoo said. “These ‘below-the-line’ fees add up to hundreds of millions of dollars each year for cable and Internet service providers at the expense of consumers who have little to no option than to pay up. The TRUE Fees Act is commonsense legislation that brings transparency to consumers and empowers them when it comes to phone, cable and Internet fees.”

Department of Justice Files Lawsuit against State of California’s Net Neutrality Law

Over the weekend, the Governor of California signed California’s new Net Neutrality Bill into law.  Shortly thereafter, the U.S. Department of Justice (DOJ) filed a lawsuit against the state of California.  The DOJ’s position is that the new law unlawfully imposes burdens on the Federal Government’s deregulatory approach to the Internet.  The United States concluded that California, through Senate Bill 822, is attempting to subvert the Federal Government’s deregulatory approach by imposing burdensome state regulations on the free Internet, which is unlawful and anti-consumer.

In filing the complaint, Attorney General Jeff Sessions issued the following statement:

“Under the Constitution, states do not regulate interstate commerce—the federal government does.  Once again the California legislature has enacted an extreme and illegal state law attempting to frustrate federal policy.  The Justice Department should not have to spend valuable time and resources to file this suit today, but we have a duty to defend the prerogatives of the federal government and protect our Constitutional order.  We will do so with vigor.  We are confident that we will prevail in this case—because the facts are on our side.”

FCC Chairman Pai and Commissioners O’Rielly and Rosenworcel issued statements as well.

Chairman Pai stated:  “I’m pleased the Department of Justice has filed this suit. The Internet is inherently an interstate information service. As such, only the federal government can set  policy in this area.  And the U.S. Court of Appeals for the Eighth Circuit recently reaffirmed that state regulation of information services is preempted by federal law.” 

Commissioner O’Rielly stated: “While not surprising, California’s net neutrality effort reaffirms its leaders’ total lack of understanding of how technology or our economy actually works,  particularly its ban on paid prioritization.  If allowed to stand, the law would be incredibly detrimental to American consumers and the continued growth of the Internet.  Thankfully, this is precisely why our nation’s founding fathers crafted a Commerce Clause to the U.S.  Constitution and why I pushed so hard for the Commission’s December action to include strong preemption provisions.  The DOJ’s action to challenge this overreach is both appreciated and appropriate.”

Commissioner Rosenworcel stated: “Yesterday, California Governor Jerry Brown signed a net neutrality bill into law.  A hefty thank you to the Golden State for your effort to get right what the FCC got wrong when it wiped out our open internet protections late last year.  The FCC's misguided decision to roll back net neutrality gave broadband providers the green light to block websites, throttle services, and censor online content.  That’s why the California law is a welcome development—it’s good for consumers, good for businesses, and good for anyone who connects and creates online.  The Department of Justice has signaled that it will challenge California's new law in court.  Regrettably, this confirms that Washington is not listening to the American people.  But I remain hopeful because the fight to save net neutrality lives on in the courts, in governors' actions, in state legislatures, in big cities and small towns, and with citizens across the country.”

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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.