Charter is returning $62.5 million to New Yorkers over slow Internet speeds in what regulators call the biggest ISP refund ever
In what regulators are calling the largest refund in US history by an Internet provider to consumers, Charter Communications will pay more than $62.5 million -- and free subscriptions to HBO or Showtime -- to New York customers who allegedly didn’t receive the Internet speeds they were promised, according to New York Attorney General Barbara Underwood. The $174 million total settlement puts an end to a months-long legal battle between the state of New York and the nation’s second-largest cable company, whose subsidiary Time Warner Cable was accused of providing slow routers and modems to customers that prevented them from accessing the download speeds they had signed up for. As many as 700,000 New Yorkers will be receiving the direct refunds, between $75 and $150 each. Another 2.2 million will be eligible for the free premium and streaming channels, which are collectively valued at more than $100 million, Underwood’s office said in a release. "This settlement should serve as a wake-up call to any company serving New York consumers: Fulfill your promises, or pay the price,” said Underwood, who added that the action “sets a new standard” for corporate advertising.
Charter said the lawsuit stemmed from Time Warner Cable’s advertising practices from before the two companies merged.
“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 said in a statement. “Charter has made, and continues to make, substantial investments enhancing Internet service across the state of New York since our 2016 merger.”
Data collected by the Federal Communications Commission show that about 93 percent of Charter’s customers nationwide receive a median download speed that is on par with their advertised speed tier.
Charter is returning $62.5 million to New Yorkers over slow Internet speeds in what regulators call the biggest ISP refund ever AG Underwood Announces Record $174.2 Million Consumer Fraud Settlement With Charter For Defrauding Internet Subscribers Charter, New York Reach $174.2 Million Settlement Over Internet Service Quality (Wall Street Journal) Charter users who didn’t get promised speeds will get $75 or $150 refunds (ars technica)