Biden's FCC takes aim at early termination fees from cable providers

A new rule proposal from the Federal Communications Commission would bar pay-TV companies from charging customers early termination fees when they sever their service contract before its expiration date.

The proposal, which the commission will vote on next month, would also force cable companies and satellite TV services to give customers a rebate if a subscriber leaves before a billing cycle ends. FCC officials said early termination fees should be eliminated so competition can flourish in the video streaming business market.

"When companies charge customers early termination fees, it limits their freedom to choose the service they want," FCC Chairwoman Jessica Rosenworcel said in a statement Tuesday. "In an increasingly competitive media market, we should make it easier for Americans to use their purchasing power to promote innovation and expand competition within the industry."