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

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."

46 of 87 comments (clear)

  1. That will show the bastards! by Anonymous Coward · · Score: 3, Interesting

    1 minute of profit, poof.

  2. 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 fahrbot-bot · · Score: 1

      The reason they can get away with it is because ...

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

      --
      It must have been something you assimilated. . . .
    2. Re:It is outright fraud. by Anonymous Coward · · Score: 1

      And the "punishment" here is to pay back to clients what was taken, and nothing more.

      No punitive damages? No compensatory payments to those whose lives where harmed by this debt? No jail time for the assholes responsible?

      Not even a few hours of community service?

      I'd say the bastards got away with it.

    3. 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.

    4. 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.

    5. Re:It is outright fraud. by Calydor · · Score: 1

      For a European it truly boggles the mind that you can have laws that are NOT the law in the entire country.

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      -=This sig has nothing to do with my comment. Move along now=-
    6. Re: It is outright fraud. by Anonymous Coward · · Score: 1

      State laws and rights. It's why the US is a better place than the EU.

    7. 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.

    8. Re:It is outright fraud. by JaredOfEuropa · · Score: 1

      We (in Europe) have laws that apply to individual countries (somewhat comparable to states in the USA in this context), as well as laws that apply to all of Europe.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    9. Re:It is outright fraud. by JaredOfEuropa · · Score: 1

      So how much did the lawyers get?

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    10. Re:It is outright fraud. by NicknameUnavailable · · Score: 1

      Generally: everything left over due to people who thought it was a scam when they were notified or otherwise didn't want to go through the hassle of filling out a form and waiting a month for a check to be snail mailed for $35 - so probably about 90% of it.

    11. Re:It is outright fraud. by Uberbah · · Score: 1

      So how much did the lawyers get?

      So why do people always ask this asinine question? Lawyers in a class action pay all of the costs and take all of the risks. Don't like it - hire you own damn lawyer. Secondly, if the choice is between letting the money that was ripped off from you stay in the hands of the thieves that stole it, or giving it to some party that didn't harm you - or hell burn it in a pile in the street - what are you going to chose?

    12. Re:It is outright fraud. by Spamalope · · Score: 1

      We ask this question because lawyers write the laws that govern the outcome, sit on the bench to adjudicate and are required to seek effective redress. If lawyers created a system where they profit, but the injured party is never made whole that matters. i.e. if lawyers make sure they get theirs when the victim doesn't that matters; when the injustice would make a nice sound-bite for a news story lawyers make the rule looser pays legal fees of winner so they don't come out of the award that should be making the injured party whole. (i.e. Lemon law car refunds - you don't get a $30k lemon car, sue, win - and then have $20k of the lawyer's fees taken out and you now have a $20k auto loan to pay and no car)

    13. Re: It is outright fraud. by WDubois · · Score: 1

      Found the Republican!!!

    14. Re:It is outright fraud. by Local+ID10T · · Score: 1

      For a European it truly boggles the mind that you can have laws that are NOT the law in the entire country.

      Seriously?

      There are no laws in France that are not laws in Italy?

      --
      "You want to know how to help your kids? Leave them the fuck alone." -George Carlin
    15. Re:It is outright fraud. by Calydor · · Score: 1

      France is a country and has one set of laws.

      Italy is a country and has one set of laws.

      America is a country and has ... fifty sets of laws?

      --
      -=This sig has nothing to do with my comment. Move along now=-
    16. Re:It is outright fraud. by Local+ID10T · · Score: 1

      France is a country and has one set of laws.

      Italy is a country and has one set of laws.

      America is a country and has ... fifty sets of laws?

      The United States of America is a union of states, each with their own laws, although they have agreed to be bound by the laws of the Union. This is similar to the countries of Europe, each with their own laws, who have agreed to implement as laws the rules of the European Union.

      Willful misunderstanding does not demonstrate intelligence, only obstinance.

      --
      "You want to know how to help your kids? Leave them the fuck alone." -George Carlin
    17. Re:It is outright fraud. by nukenerd · · Score: 1

      Yes.

    18. Re:It is outright fraud. by nukenerd · · Score: 1

      The UK is one nation but Scotland (and AFAIAA Northern Ireland) have some different laws from England

  3. The twist by Anonymous Coward · · Score: 1

    They are refunding them in bitcoin.

  4. 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.

    1. Re:Competition by rojash · · Score: 1

      Thats one area where this nation befuddles me. Competition everywhere else except in the stupid utilities. SO what if they built the infra ?? Just have us pay extra to the others who come in. Ridiculous ancients still run this darn economy like the Monopoly guy and no one seems to mind. But anything about the fucking Kardashians or football or voyeuristic TV and they are all over it.

  5. Vote by rsilvergun · · Score: 1

    And vote in your mid terms and even your primaries. This is why it's so important to vote. People don't realize how much power elected government officials wield. But I guarantee you Corporations do

    --
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  6. 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.

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    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    1. Re:So no punishment then by alvinrod · · Score: 1

      Normally I’d say something about damage to their brand but this is Comcast we’re talking about here.

    2. Re:So no punishment then by AmiMoJo · · Score: 2

      What happens if your credit rating was damaged? You might be paying more for a mortgage, or not have got one at all.

      In the UK you could get restitution, i.e. they would pay off part of your mortgage or whatever other losses you suffered, as well as the amount they over-charged. Does it not work that way in the US?

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    3. Re:So no punishment then by youngone · · Score: 1

      In the UK corporations do not control the government like they do in the US.
      I am not claiming there is no corruption, but it is not part of the system.

  7. Don't try that in Europe by Anonymous Coward · · Score: 4, Informative

    If you try that in Europe there's a very good chance you will end up in a criminal court and you are probably then going to jail.

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

    1. Re:Don't try that in Europe by BringsApples · · Score: 1

      We Americans have no choice. None of us know where the private company stops, and government begins. ...or if there's a difference at all.

      --
      Politics; n. : A religion whereby man is god.
    2. 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!

    3. Re:Don't try that in Europe by Locke2005 · · Score: 1

      We have the best politicians that money can buy, and corporations have a lot of money... er, I mean speech!

      --
      I've abandoned my search for truth; now I'm just looking for some useful delusions.
    4. Re:Don't try that in Europe by nukenerd · · Score: 1

      That's because it is the consumer's fault. ... Consumers are also voters, you see.

      Yes, I'm sure there is a tick box on USA voting forms that says "Kick Comcast up the arse". I guess you guys failed to spot it.

  8. It's too bad I'm in a Republican state. by Anonymous Coward · · Score: 1

    This would never happen here.

  9. Buying your way out of your contract... by Hadlock · · Score: 1

    Nobody ever regretted buying their way out of their contract. $240 is a lot, but it's not a lot-lot, and it's better than being stuck upside down in a contract you can't afford.

    --
    moox. for a new generation.
  10. The part I like: by Anonymous Coward · · Score: 1

    Where it said "Comcast stuck too many Massachusetts customers." So if they had only screwed fewer customers they would have been happy to overlook that little problem with billing.

  11. Better idea by Anonymous Coward · · Score: 1

    Disincorporate Comcast in the entirety and execute the stockholders.

    Their behavior is cruel and exploitative, though not unusual at all. So we need to stop it.

    Once and for all.

    1. Re:Better idea by Applehu+Akbar · · Score: 1

      Disincorporate Comcast in the entirety and execute the stockholders.

      For that you'll have to wait until January, when the new Congress gets seated. But for now it's amazing that a state government actually sided with consumers against a such a House Major of Harkonnen nobility as Comcast. Can the rabble already dream of generic epinephrine injectors now?

    2. Re:Better idea by Obfuscant · · Score: 1

      Disincorporate Comcast in the entirety and execute the stockholders.

      For that you'll have to wait until January, when the new Congress gets seated.

      It's refreshing to see someone admit that the Democrats are willing to kill people just because they're retirement plan includes tech stocks.

    3. Re: Better idea by Obfuscant · · Score: 1

      Nope, that they are complicit, even participatory in the whole process of harm that has been inflicted upon America is the reason.

      You do realize, I hope, that every penny you have deposited in a bank is not just sitting in the bank twiddling its thumbs waiting for you to come take it back out. It is being loaned to other people -- house loans, car loans, building loans, etc. That makes you complicit, even participatory in every "process of harm" that someone who borrowed that money does. Well, I suppose you can try rationalizing your involvement by claiming that your money is entirely in the reserve that is in the local branch to deal with daily transactions. But then, you'd be liable for the murder and mayhem if someone goes to the bank, cashes a check to get cash to buy a gun, and then shoots someone with it. Your money was involved. Oh, the humanity!

      Or maybe you might think for a second and realize that people who have retirement accounts don't usually specify which specific stocks they want to buy. There's a manager that does that for them. That means they are not complicit, not participatory, in the "process of harm". They're just trying to save money so they can live after they retire.

      Phhht. It's hyperbole like "execute the stockholders" that makes discussions so much fun, isn't it?

  12. Oh Wow, $35 Per Defrauded Customer by NicknameUnavailable · · Score: 2

    That'll show them. Any company that is caught scamming that many people deserves to be shut down, no if's and's or but's.

  13. Just don't do business with them by Locke2005 · · Score: 1

    I had a one-year contract, moved a couple blocks, they insisted on canceling the contract, creating a new account, and jacking my rate up $40/month... after telling me when I got the contract that moving it to another address was no problem.

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
    1. Re:Just don't do business with them by IsThisNickTaken · · Score: 1

      It was "no problem" to "them" as they will get another $40/month.

  14. Costs are not prices by radarskiy · · Score: 1

    "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."

    There is no obligation to make the customer pay taxes and fees individually on top of the prices as opposed to including them in the price. As an example, my T-Mobile $60 per month wireless plan results in me being billed exactly $60 per month. Any taxes and fees are paid out of that $60 dollars.

  15. Capitalism by greylion3 · · Score: 1

    So, how is that capitalism working out for you?

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    Privacy begins with ..
  16. Mod Undo by Immerial · · Score: 1

    Went to mark insightful and let go of the mouse button too soon. :P :P :P