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Plaintiffs From Seven States Sue Comcast For Misleading, Hidden Fees

An anonymous reader quotes a report from DSLReports: Back in 2013 Comcast began charging customers what it called the “Broadcast TV Fee.” The fee, which began at $1.25 per month, has jumped to $6.50 (depending on your market) in just three years. As consumers began to complain about yet another glorified rate hike, the company in 2014 issued a statement proclaiming it was simply being “transparent,” and passing on the cost of soaring programmer retransmission fees on to consumers. There’s several problems with Comcast’s explanation. One, however pricey broadcaster retransmission fees have become (and keep in mind Comcast is a broadcaster), programming costs are simply the cost of doing business for a cable company, and should be included in the overall price. Comcast doesn’t include this fee in the overall price because sticking it below the line let’s the company falsely advertise a lower rate. Inspired by the banking sector, this misleading practice has now become commonplace in the broadband and cable industry. Whether it’s CenturyLink’s $2 per month “Internet Cost Recovery Fee” or Fairpoint’s $3 per month “Broadband Cost Recovery Fee,” these fees are utterly nonsensical, and inarguably false advertising. And while the FCC can’t be bothered to take aim at such misleading business practices, Federal class action lawsuit filed this week in California is trying to hold Comcast accountable for the practice. Plaintiffs from seven states — including New Jersey, Illinois, California, Washington, Colorado, Florida and Ohio — have sued Comcast alleging consumer fraud, unfair competition, unjust enrichment and breach of contract. What’s more, the fee has consistently skyrocketed, notes the lawsuit. Comcast initially charged $1.50 when the fee first appeared back in 2013, but now charges upwards of $6.50 more per month in many markets — a 333% increase in just three years.


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