@Warsaw, depending on the exact details, it would harm small ISP's because it takes logging, monitoring (which they likely do) but adds on requirements of distilling and filtering this information and disseminating that in a format that makes sense to the average joe. This takes work. Then you'll likely have additional overhead for confused consumers calling in, adding hours to the help-desk services. I don't think we are talking 'huge costs', but it might be additional straws that can really make it hard for a new up and coming company to get off the ground. Also, many times, software and services exists to help automate or facilitate such things, but also many times such software cost too much for the smallest companies that can benefit from them, leaving them the choice of trying to do it manually (labor intensive) trying to develop in-house tools (risky and potentially very expensive) etc. -all that said, I don't know the details of the regulation, so if the reporting is not required to be dynamic information (e.g. daily updates or something) and more of a 'this service can be throttled' one-liner in the contract.. then the cost becomes more of an opportunity cost.. the small guy can't afford to purchase sufficient over provisioning capacity to guarantee all its customers max speed all the time, so they have to put that line in their marketing, the larger guys can afford to over provision and don't need that line... guess who the consumer will pick every time?
Also, I'm not at all taking a position on right/wrong on this matter. I know not nearly enough about it.. but I do know enough to see many ways that such things could harm small fish trying to start/grow.