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FCC Urged To Ban Premium Pricing For Privacy | Media Post

In her letter, Warren specifically criticizes AT&T’s decision to charge Gigabit consumers higher fees to avoid the company’s online behavioral advertising program — which involves tracking their online activity in order to serve them tailored ads.

When AT&T rolled out its 1-GB fiber network in Kansas City last year, the company said the price of subscriptions to its network will depend on consumers’ willingness to be tracked for ad-targeting purposes.

People who accept AT&T’s ad targeting — which the company calls the “Internet Preferences” program — can purchase 1-GB service for $70 a month. People who don’t want to participate in Internet Preferences will be charged $99 a month for the same 1-GB service. (After factoring in taxes and fees, the pricing differential reportedly ranges from $42 to $66.)

The company uses a similar pricing model in Austin, where it has operated a high-speed U-verse network since late 2013.

“The FCC is right to be concerned about a service that requires consumers to pay hundreds of dollars extra each year so that their … provider does not collect and sell information on the Web sites they visit, the ads they see, and the terms they enter into search engines,” Warren writes.

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FCC Urged To Ban Premium Pricing For Privacy 06/22/2016.

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