by Doug La Rocque
New York State Attorney General Barbara Underwood has announced an agreement between her office and Charter/Spectrum on a $172 million consumer fraud settlement concerning what her office labeled misleading internet speeds. As part of the settlement, Charter/Spectrum is required to implement reforms Ms. Underwood referred to as precedent setting, particularly as they apply to marketing and business practices.
The settlement orders a direct restitution of $62.5 million dollars to more than 700,000 active customers, who will each receive between $75 and $150. Included in the agreement, is a provision to provide 2.2 million active subscribers with streaming service and premium channels at no charge. The estimated retail value of this clause is $100 million.
In 2017, then Attorney General Eric Schneiderman filed a complaint in New York State Supreme Court that alleged Charter/Spectrum had failed to deliver the internet speed or reliability it had promised subscribers. The language in the agreement has the Attorney General acknowledging that Charter/Spectrum had made substantial network enhancements since the complaint was filed.
In a prepared statement, Charter/Spectrum said “ we are pleased to have reached a settlement with the Attorney General on the issue of certain Time Warner Cable advertising practices in New York prior to our merger, and to have put this litigation behind us. Charter has made, and continues to make, substantial investments enhancing internet service across the State of New York.”