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Comcast Forced To Refund $700,000 To Customers Over Misleading Fees (vice.com)

Posted by BeauHD on from the slap-on-the-wrist dept.

An anonymous reader quotes a report from Motherboard: Comcast has been forced to shell out $700,000 in refunds and cancel the debt of more than 20,000 Massachusetts customers after a state attorney general investigation found the company routinely jacks up consumer bills via a bevy of misleading fees. An investigation by Massachusetts Attorney General Maura Healy found that Comcast routinely advertises one rate, then charges customers up to 40 percent more when the bill for service actually arrives. When shocked customers then tried to cancel or downgrade to cheaper broadband and TV plans, Healy's office found they were socked with a $240 fee for violating long-term contracts. Many users were promised a locked-in rate of $99, but hidden fees and surcharges quickly left many with service plans they couldn't afford, the AG said. Under the new settlement with Massachusetts, Comcast must forgive all outstanding debts for unpaid early termination fees and related late fees, clearly disclose all fees in future advertisements, and train the company's service reps to more clearly outline billing caveats. "Comcast stuck too many Massachusetts customers with lengthy, expensive contracts that left many in debt and others with damaged credit," Healy said in a statement. "Customers have a right to clear information about the products and services they buy. This settlement should encourage the entire cable and telecommunications industry to take a close look at their advertisements and make sure customers are getting a fair offer."

7 of 87 comments (clear)

  1. It is outright fraud. by Fly+Swatter · · Score: 3, Insightful

    The reason they can get away with it is because the 'taxes' part of the additional fees varies by region and government. Since it varies it can't be a flat advertised price. The 'and fees' part though, should be outright illegal if you advertise a 'price for a service'. This is supposed to be what regulated monopolies and utilities is supposed to not allow happen...

    1. Re:It is outright fraud. by Anonymous Coward · · Score: 2, Insightful

      "The lawsuit stated that Comcast nets roughly $1 billion in additional revenue from such fees annually."

      So they were required to refund $700,000 for hidden fees not disclosed when customers signed contracts and these hidden fees have made Comcast around $1 billion.

      For the judgment to actually have teeth, they would have had to refund the whole $1 billion, plus a fine of at least another $1 billion. This judgment was just a slap on the wrist that is typical of current government enforcement on large companies.

    2. Re:It is outright fraud. by NicknameUnavailable · · Score: 3, Insightful

      Did you miss the part where they didn't get away with it and had to refund $700k?

      You mean $35 per defrauded customer, or 0.07% of what they stole? Yeah, that'll show em, I'm sure they'll update their next act of mass fraud to ensure they make up that 0.07% such that they can pocket a cool billion.

    3. Re: It is outright fraud. by Anonymous Coward · · Score: 1, Insightful

      Consider that many US states have populations larger than some European countries. California is the 8th largest economy in the world. You could then consider the federal government as more like the EU.

  2. Competition by DaMattster · · Score: 4, Insightful

    It's news like this that proves competition is good. In areas where there are only one or two options for internet and TV, shit like this can happen almost unchecked. Unregulated monopolies are only good for one party, the corporation. Without competition, you get slow and shitty service.

  3. So no punishment then by ranton · · Score: 4, Insightful

    I missed the part of the story where Comcast was punished at all. Lengthy costly lawsuits and in the end they only have to give the money back with no punitive penalties? That's a real sweet deal there.

    --
    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
  4. Re:Don't try that in Europe by silverkniveshotmail. · · Score: 2, Insightful

    I've never understood why you Americans take so much abuse just because it's dished out by a private company.

    My favorite thing we like to do is blame the consumer for everything.

    Did Comcast screw you over for years? you're stupid!

    Did Apple lie to you about your warranty rights? Moron!