Charter To Refund $62M In Slow Internet Settlement

Charter To Refund $62M In Slow Internet Settlement

Charter To Refund $62M In Slow Internet Settlement

The state Attorney General's Office has reached a $174.2 million consumer fraud settlement with Charter Communications, parent company of cable and internet service giant Spectrum.

The lawsuit filed previous year alleged that Charter failed to deliver the Internet speed or reliability it had promised in "aggressive marketing" campaigns.

The refunds are going out to around 700,000 subscribers (each of which will only get $75-$150), whereas the freebies will be offered to 2.2 million subscribers. Charter also agreed to overhaul its service by upgrading hardware and submitting to regular quality checks, among other reforms. "Not only is this the largest-ever consumer payout by an internet service provider, returning tens of millions of dollars to New Yorkers who were ripped off and providing additional streaming and premium channels as restitution - but it also sets a new standard for how internet providers should fairly market their services".

The case alleged that the state's largest Internet provider, originally operating as Time Warner Cable and later as Spectrum, failed to deliver the reliable and fast Internet service it had promised.

"The Attorney General's office prevailed at every major stage of the court proceedings", Underwood's announcement today said.

Everybody loves to hate their internet service provider, but few ISPs have been the source of as much anger as Charter - at least, in NY.

In February 2017, the AG charged in a civil lawsuit that Charter Communication, and its predecessor Time Warner Cable, knowingly delivered since 2012 slower internet speed to customers than promised. Charter merged with Time-Warner Cable in 2016. That case is based on Charter ailing to roll out rural internet according to the State of NY.

NY consumers will receive $62.5 million in direct refunds, with more than $100 million going to premium channel and streaming service subscribers. Charter is to notify costumers of their eligibility for video or streaming services within 120 days of the settlement. Those subscribers are not eligible for a further payment.

The NYS Public Service Commission is involved in a separate dispute with Charter Spectrum, challenging its ability to operate in New York State.

Following the Attorney General's investigation, Charter made significant investments to address the problems identified in the complaint and improve internet service in NY. "We look forward to continue providing the best TV, Internet, Voice and Mobile products to our customers, and to bringing broadband to more homes and businesses across the state".

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