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Charter Customer Sues Over Hidden Fees, Claims 'Massive Billing Fraud' (arstechnica.com)

An anonymous reader quotes a report from Ars Technica: A Charter customer has sued the cable company, alleging that it falsely advertises a lower price than it actually charges and falsely tells customers that extra fees tacked onto their bills are mandated by the government. The complaint, filed in California State Superior court in San Diego, takes aim at the "Broadcast TV" and "Sports Programming" surcharges that are added to customers' bills despite not being included in the advertised rate. "Charter is committing massive billing fraud by disguising price increases above the advertised and promised service package price in the form of the bogus 'Broadcast TV and Sports Programming Surcharges' line item on customer bills," said the lawsuit filed last week by Michael Song. The plaintiff is a subscriber in California, where Charter, the second largest cable company in the US after Comcast, operates via its newly acquired Time Warner Cable (TWC) subsidiary. Song is paying an extra $8.75 a month from those two fees combined. In addition to subtracting the fees from the advertised price, Charter falsely tells customers that it collects the fees to comply with government mandates, the lawsuit says. A Charter/TWC bill from last month is included in the complaint, and it says, "TWC imposes surcharges to recover costs of complying with its governmental obligations." Song's complaint also has a transcript of a chat with a Charter customer service agent, who claimed that Charter pays the broadcast fee back to the government. The customer service agent apparently has only a limited grasp of English, but the chat transcript helps illustrate one of the ways in which customers are being misinformed about their bills. Song's lawsuit repeatedly refers to the Broadcast TV and Sports Programming surcharges as "bogus" and "hidden," since they subtract a portion of the standard monthly charges from the "services" section of the bill.

57 of 96 comments (clear)

  1. Comcast does this too. by Anonymous Coward · · Score: 2, Interesting

    I was quoted 120$ for internet, and cable. Then I was billed $145, and every so often they try raising the rate. Its a scam, but there is no cable internet oversight! So while our internet is 50x as slow as other countries and 8x as expensive, we have no legal recourse to defend ourselves.

    1. Re:Comcast does this too. by MobyDisk · · Score: 4, Informative

      So while our internet is 50x as slow as other countries and 8x as expensive

      According to Akamai, the US averages 12.6Mbit/sec while South Korea leads the pack at 20.5Mbit/sec.

      we have no legal recourse to defend ourselves.

      That's a silly statement considering this is an article about someone using legal recourse to defend themself.

      (Yes, I wasted time debating a preposterous claim by an AC. Yeah, waste of time.)

    2. Re: Comcast does this too. by GoodNewsJimDotCom · · Score: 5, Interesting

      South Korea rolled out 8000mb/s, and so has Google. In Japan, you get your first year of broadband free because competition is so much then its 12$ or 20$ a month. Same ac.

    3. Re: Comcast does this too. by GoodNewsJimDotCom · · Score: 1

      Well guess I'm not ac anymore. Time for Comcast to throttle my connection.

    4. Re: Comcast does this too. by MobyDisk · · Score: 1

      Great job. By showing that number, you have proven, beyond any doubt, that indeed the United States is 50x slower and 8x more expensive. An that there is no legal recourse.

    5. Re: Comcast does this too. by Ash-Fox · · Score: 1

      In Japan, you get your first year of broadband free because competition is so much then its 12$ or 20$ a month. Same ac.

      I have friends in Japan that can't even get any type of Internet connection in their apartments...

      --
      Change is certain; progress is not obligatory.
    6. Re: Comcast does this too. by AmiMoJo · · Score: 1

      My girlfriend has the most basic, cheapest broadband available in her rural part of Japan. It's cheap, and it's a 2Gb symmetrical fibre connection. Thing is, on the cheapest tariff you only get a bog standard modem with single gigabit ethernet port.

      It costs about 1/3 what my shitty ADSL 50/12Mb line costs in the UK.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    7. Re: Comcast does this too. by MobyDisk · · Score: 1

      OMG the post got modded up. For garbage uncited irrelevant data. Apparently no moderator actually read the post. *facepalm*

    8. Re:Comcast does this too. by strikethree · · Score: 2

      I was quoted 120$ for internet, and cable. Then I was billed $145, and every so often they try raising the rate. Its a scam, but there is no cable internet oversight!

      My mortgage company does this too. Pay regularly and ontime for a few years and receive and email saying, "call us to find out how we are allocating your money." followed a few days later by, "your mortgage will be late if not paid by the 15th.", all the while I am left going, "WTF? I have paid my mortgage on time and regularly for years. How does this shit happen?"

      Ultimately, it is the new business model, fleecing your customers through "administrative fees". It is a shame that companies are allowed to feed on us unethically. Society has devolved into a bunch of thieves fighting amongst themselves to become the wealthiest. Hm. It has always been like that.

      Remind me again why we should participate in this?

      --
      "Someone needs to talk to the tree of liberty about its ghoulish drinking problem." by ohnocitizen
  2. ESPN Tax by 110010001000 · · Score: 2

    It is the ESPN tax. ESPN takes your money, and pays hundreds of millions in rights fees for sporting events. That is why the average NBA salary is $5.1 million a year. Oh, plus the taxpayers are on the hook for building the stadiums.

    1. Re:ESPN Tax by Anonymous Coward · · Score: 1

      And even if you don't have ESPN, you still have to pay the tax. Seems a lot like Microsoft and computers.

      Of course with Charter, it's really worse. I pay extra for ESPN, but it quit in July and they still can't get it to work despite the fact they're billing me for it.

  3. #thanksobama by JoeyRox · · Score: 1

    I'll be sad when I can't use this ridiculous meme anymore.

    1. Re:#thanksobama by Anonymous Coward · · Score: 1

      Just because he will no longer be in office does NOT mean you can't still blame him, so take heart.... ;)

    2. Re:#thanksobama by david_thornley · · Score: 1

      The change from blaming everything on Clinton to blaming everything on Obama seemed to happen in December 2012.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  4. Here's how to beat this game... by buss_error · · Score: 4, Insightful

    Cancel service. That's what I did years ago. I don't watch TV. I only watch what I am interested in. No more "shove that crap down their thoughts and they'll pay LOTS for it" programming.

    Professional sports has gone from some reasonable charge to "holy cow you want HOW MUCH to watch?" Turn them off too.

    Internet gets too expensive? Investigate alternatives such as Zip, ViVent, and other terrestrial microwave ISPs.

    --
    Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
    1. Re:Here's how to beat this game... by Rockoon · · Score: 2

      These snowflakes seem to think that Cable television is a necessity. Sometimes they will even try very hard to form a rational argument about why it is, such as "try not having cable when you have kids."

      Plenty of people have never has cable television, but that doesnt seem to matter.

      --
      "His name was James Damore."
    2. Re:Here's how to beat this game... by Guido69 · · Score: 2

      How on earth is this (a) insightful or (2) "beating this game"? Insightful is challenging the charges that were not agreed upon to obtain the service at the price advertised.

      --
      - If we aren't supposed to eat animals, then why are they made out of meat? - Steven Wright
    3. Re:Here's how to beat this game... by Stan92057 · · Score: 1

      you clearly never lived in a antenna dead/bad reception zone. those living in and near city's don't have that problem but as little as 15 miles outside a city reception is a bad problem.18 years i lived with ABC,CBS and sometimes NBC forget VHF channels lol for 18 years i love cable i hate being forced to pay for stuff i don't want or need that needs to be addressed ASAP

      --
      Jack of all trades,master of none
    4. Re:Here's how to beat this game... by Anonymous Coward · · Score: 1

      I paid $3,000 to have fiber installed just to avoid the cable companies and $150 a month which humorously is better than the cable option price wise and faster in the upstream direction (I get a 20/20 connection for this price). A person in a similar situation as me pays something like $300 / month in order to get a worse up connection. Cable companies suck. I would have gone with ADSL as I have always done in past, but now I live a bit too far from the center of town or CO to get anything but bonded ADSL (two 3mbps connections for a total of 6mbps, plus i could get a third non-bonded 3mbps connection, but that is still less than the 10mbps minimum I'd like to have even though i've lived off 1.5mbps before voluntarily in the not so distant past). Anyway- it was well worth it. Lower latency than ADSL or cable and a decent up connection.

    5. Re:Here's how to beat this game... by Anonymous Coward · · Score: 1

      I do believe that would be playing the game rather than beating it. If you drop them as a provider altogether you don't play that unethical charge game any more. Assuming the competition (should you have any) is not playing the game also, or in the case you simply go without. The problem is there is no real competition in most places and they know it. Fortunately there is some competition here in some areas, like ADSL, and then there is this wonderful thing called piracy. Combine the two and you can say 'fuck off'.

    6. Re:Here's how to beat this game... by stephanruby · · Score: 1

      Even if you cancel right away, you may need to prove breach of contract or false advertising, unless you can find a customer service person who is willing to waive that early termination fee for you.

    7. Re:Here's how to beat this game... by nnull · · Score: 1

      I'm curious how you were able to pay a company $3000 to have fiber installed? I can't even get fiber installed to my warehouse where fiber is available a street away, even if I payed them a million dollars, they would spit on me.

    8. Re:Here's how to beat this game... by Rockoon · · Score: 1

      you clearly never lived in a antenna dead/bad reception zone.

      Behold another example of someone trying very hard to form a rational argument about why cable is a necessity.

      Lets suppose for a moment that I did live someplace that had bad OTA reception. Then in your view I absolutely have to pay for cable, right? Thats not a rational argument. Its just clinging to the belief that cable is necessary, when it isn't.

      --
      "His name was James Damore."
    9. Re:Here's how to beat this game... by jrumney · · Score: 1

      "try not having cable when you have kids."

      Next time someone attempts that argument, you should thank them for their very sound advice.

    10. Re:Here's how to beat this game... by Quirkz · · Score: 1

      I have Charter's internet service. It's quite nice. They bill a flat $59.99 a month for residential 100Mbps down, 7Mbps up. There are no other line-items on the bill. No tax, no surcharges, no equipment rental fees, nothing.

      I think it's the TV side that's being disputed. I'm in a similar situation, just paying internet, and the bills are accurate. I think I only get about half your speed, though, for the same price. The thing that ticks me off about them is Charter advertises to me constantly that their internet package should only cost $29.95*, even though they're charging me $60.

        *If bundled with TV and phone, it says, in small print, below the gigantic "Internet for $29.95". I don't care that it's a bundle, I care that the impression they give is they're charging me twice what it's worth.

    11. Re:Here's how to beat this game... by networkBoy · · Score: 1

      I have *shit* OTA reception.
      Still no cable.
      I do pay for (ugh) AT&T internet, but not for phone or video.
      Comcast would get my business (simply based on speed/$), but they refused to use the existing wiring in the house (All RG6) and insist on running their own wire through the wall (not gonna happen, 8" of hardened concrete and cinderblock with rebar).

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    12. Re:Here's how to beat this game... by Stan92057 · · Score: 1
      --
      Jack of all trades,master of none
    13. Re:Here's how to beat this game... by buss_error · · Score: 1

      Try reading a book or getting a hobby. I live where there's very good reception (the station's transmitters are less than 8 miles from my home) and that doesn't tempt me to turn on the TV. There isn't anything, nothing, zero, zip slant zilch, nada I want to see - not now that I've reclaimed my life and stopped drooling in front of the box.

      All those wasted hours, gone forever...

      --
      Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
  5. I smell a payday for the lawyers! by Anonymous Coward · · Score: 3, Insightful

    I'm sure in 5 years time they'll come to an out-of-court settlement with no admission of liability with the FCC to pay back 10% of the money made with this scheme, pocketing the rest as profit. And if you're lucky, you'll get a $10 voucher off your next cable bill as settlement for the class action. Fucking love the way business works in America, right?

    1. Re:I smell a payday for the lawyers! by Anonymous Coward · · Score: 2, Insightful

      And the cable bill will go up another $20

  6. CenturyLink does this also. by rickb928 · · Score: 1

    They are an Internet recovery of something fee, and so far this year doubled it from $1.99 to$3.99/month.

    With if asked about it, they offered me $50/month off everything, if I committed to two years.

    I felt dirty even though I said no, not ready to extend the relationship.

    --
    deleting the extra space after periods so i can stay relevant, yeah.
  7. Re:Report all problems with Comcast! by techno-vampire · · Score: 1

    The U.S. government is very weak at helping citizens, in my opinion.

    The current administration certainly is. What the next one will be like is anybody's guess.

    --
    Good, inexpensive web hosting
  8. Local TV Surcharge by Anonymous Coward · · Score: 2, Interesting

    I live in Lincoln, NE, a market that was served by TWC. One of the most frustrating fees is the surcharge for local TV stations. We used to get the Lincoln and Omaha TV stations, but slowly the Omaha stations have been dropped from the channel lineup or relegated to SD only. We have fewer local stations than a few years ago, but the fees for those have increased. The Omaha stations generally are of a higher quality than those from the Lincoln, which isn't surprising due to the Omaha market being larger. I'd rather watch the news from the Omaha stations than from the Lincoln stations. I'd understand if the local TV stations wanted higher rates and they necessitated price increases. However, it's not reasonable that the fees have gone up while stations have been dropped. Charter also promised to do away with surcharges when they acquired TWC, but I still see those on my bill.

    1. Re:Local TV Surcharge by Gilgaron · · Score: 1

      I've always found those a bit annoying... double dipping by the local broadcasters. I always thought they should design a tuner into the cable box and have it cut to the antenna feed for the local stations. We cancelled cable TV, the local guys get no silly fee, but I can still watch all their stuff. It is absurd.

  9. About bloody time by rsilvergun · · Score: 2

    Now go after my cell phone company. I've had a bullshit "Regulatory Compliance Fee" that wasn't disclosed in their adverts for years. By the time I knew it was there I was knee deep in the contract. What pisses me off the most is the number of people I know who think this crap is taxes and go to the polls demanding a tax break for these poor over taxed companies. Laughing all the way to the bank, they are...

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  10. SlingTV by webnut77 · · Score: 2

    I subscribe to SlingTV so I can watch college football. Orange package ($20 mo.), Blue package ($20 mo.), and Sports package ($5 mo.) totaling $45. I could probably get by with the Orange and Sports. Sports gets you ESPN{,2,3,U} and SEC Network. You can watch from a desktop or any tablet or phone. You can watch stations in the Blue package on three devices at the same time.

    You can also watch games at ESPN Watch. When you sign in, SlingTV is in the dropdown box.

  11. Ever play Warhammer 40K? by rsilvergun · · Score: 1

    or lots of D&D? Ever shoot guns or join a pipe club? TV Sports are Social Circles. It's a reason to get together with people TV as a whole is great for socializing. Water Cooler talk and the like. It's a shared experience. When I couldn't afford cable and my kid had to go without she stuck out like a square peg in a round hole because she couldn't watch the 8 o'clock shows (too late for her to go over to a friends house; and hard to make friends without that ice breaker anyway).

    These shared social experiences are what let Games Workshop charge $20 bucks for a little plastic toy soldier and they let DTV & Charter charge $100/bucks/mo for a sports package.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:Ever play Warhammer 40K? by JonnyCalcutta · · Score: 1

      $100+ per month seems a hell of a lot of money to pay for an ice breaker. And then you have to waste time actually watching the stuff.

      If you actually like sports it seems it would be cheaper (or at least better value) to go down the pub and watch them there - at least you have a chance of making friends there.

  12. Which is why I socialize when I watch the game by raymorris · · Score: 1

    > It's a reason to get together with people TV as a whole is great for socializing.

    It is, so I go socialize when I watch the game, rather than hiding out in my house. I go to the Denver Broncos bar here in Dallas, and cheer with the other Broncos fans.

    Also, I hear the Corvette club is a fun way to socialize. That doesn't make a Corvette a necessity.

  13. Re: I was quoted $65 per month from Charter... by Anonymous Coward · · Score: 1

    Keep fighting. I had to complain to my state's PUC before they would give me ESPN.

  14. Cell phone administrative fees by yogidog98 · · Score: 3, Insightful

    I hope the Charter customer sues the pants off them and wins. I have complained to TWC about the broadcast and sports fees and deceptive pricing for several months.

    Cell phone companies do the same thing but they call them "administrative fees". They are not required by the govt, and not an optional fee from the provider, so they should be included in the advertised base price or not charged at all.

  15. Re: #thanksgrant by Nidi62 · · Score: 1

    Don't forget Jackson. Jackson was pretty much the heart and soul of the Army of Northern Virginia and his mere presence of the battlefield could literally turn the tide of battles. He and Longstreet were the 2 best corps commanders in the Confederate Army if not the whole American continent. And to be fair to Lee, he did not expect to fight at Gettysburg. He put too much reliance on JEB Stuart for reconnaissance and if Ewell had pushed the attack as ordered (it was a vague order but still an order) they quite possibly would have taken Cemetery Hill on the first day, completely changing the circumstances of the battle.

    --
    The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
  16. Re: #thanksgrant by Nidi62 · · Score: 1

    Oh yeah, the Union never did anything like that....*cough* Sherman*cough*. Sorry, allergies

    --
    The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
  17. The Best Part by sk999 · · Score: 5, Insightful

    Song is not asking for his money back. Why? Because cable companies (and others) normally insert an aribitration clause into their agreements to cover such situations, which would require Song to submit his dispute to arbitration (which would cost much more than the amount that could be recovered). Instead, Song is asking for injunctive relief - basically asking that Charter not charge him in the future. Why would he do so? Let's read a bit more of the agreement:

    "Only claims for money damages may be submitted to arbitration; claims for INJUNCTIVE ORDERS or similar relief MUST be brought in a COURT ..."

    Charter basically demands that Song hale it into court. Nice job, Charter lawyers.

    1. Re: The Best Part by Cryophallion · · Score: 4, Interesting

      But maybe then they can take the injunction (if they win) into arbitration to get the old charges removed. Once they have a court saying it was illegal, suddenly arbitration seems less like a David vs Goliath issue...

  18. Re: #thanksgrant by ChrisMaple · · Score: 1

    If you want to consider the worst jackbooted thug ever to be elected President, you'll have to go back further to slave owner Andrew "Trail of Tears" Jackson.

    --
    Contribute to civilization: ari.aynrand.org/donate
  19. Re: #thanksgrant by ChrisMaple · · Score: 1

    Andersonville.

    --
    Contribute to civilization: ari.aynrand.org/donate
  20. Next...the airlines by Tony+Isaac · · Score: 1

    They are MASTERS of the hidden fee and deceptive advertising about low fares!

  21. Re: #thanksgrant by serbanp · · Score: 1

    you're a little confused. Both Grant and Sherman have been Union Generals...

  22. Re:Report all problems with Comcast! by ArmoredDragon · · Score: 1

    Has the potential to be either much better or much worse. In other words, the office of the president has jitter.

  23. They're Not The Only One by lcreech · · Score: 1

    Sirius/XM should be investigated also. Their fees are over the top.

  24. This is why we cant have by Anonymous Coward · · Score: 1

    Nice things...
    Corporate greed and fraud, lawmakers corruption, and business shenanigans ( with a foreign accent ).

    It is time to classify the internet as a utility. Like power and water, or the old phone system.
    Maybe make the wireless cellphone business a utility also.

    Seriously, I don't like too much regulation, but the level of skimmng/tacking and greed here is astounding to the pont
    of makng me a vocal advocate of the public utility solution.

  25. Not uncommon, but FCC will help by LordLimecat · · Score: 2

    I had Verizon trying to tell me that their quoted rate of $49.99 (after heavy haggling) was being increased to $60 because of fees and whatnot. All fine and good, but $5 of that was equipment fees. I had purchased my own FIOS router, and returned all set top boxes, so what were the fees? Well, Verizon informed me they were mandatory, and regardless of what the FCC said Verizon had their own policies.

    2 months and 1 FCC complaint later, I got an apologetic letter from Verizon informing me that I was correct and they would lower their price.

    As a child you assume that the laws we have in place means that the problem is solved. As an adult you find out that you have to be vigilant and not afraid to stand up for your rights, because people will take advantage either through greed, malice, or simple ignorance. I dont assume the Verizon reps knew the law, just what they were told by their supervisors, but if I had not taken the initiative on my own I would be paying an extra $60 a year for my ignorance.

    All this to say-- glad this is being pressed, because the only way you get the phone reps to accord with the law is to put the fear of civil suits into the heart of their management.

    1. Re:Not uncommon, but FCC will help by strikethree · · Score: 1

      I dont assume the Verizon reps knew the law, just what they were told by their supervisors, but if I had not taken the initiative on my own I would be paying an extra $60 a year for my ignorance.

      Of course they knew, you were not the only one being fleeced. There are still hundreds of thousands of people out there getting charged that fee. I wonder where that 6+ million dollars is going....

      --
      "Someone needs to talk to the tree of liberty about its ghoulish drinking problem." by ohnocitizen
  26. Re:The market has a solution for this by LordLimecat · · Score: 1

    Its simpler to file an FCC complaint. They have a pretty website set up and it takes like 3 clicks to file. I've gotten results with it and had my bill reduced to where it belongs, and I have to assume the FCC ferrets that case away and watches to see how many of them pile up.

  27. Re:Report all problems with Comcast! by networkBoy · · Score: 1

    This year I think is beyond "Jitter" and into "outlier" territory... :)

    But yes, part of the problem is the amount of jitter in the executive office is increasing term over term.

    --
    whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
  28. a way to stop this DEAD by laurencetux · · Score: 1

    Require that each and every "government charge" be justified by a CFR cite (or equivilent State/Local law cite)

    if a charge can not be cited then it must be included in the per month charges

    oh btw whenever possible Customer Owned equipment should be allowed (and any related rental charges dropped)