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Release date 11/15/2018
Consumer Reports today applauded the Massachusetts Attorney General's settlement with Comcast over misleading and deceptive advertising. The nation’s largest cable company will pay $700,000 in refunds and cancel debts for more than 20,000 Massachusetts customers. The Attorney General alleged that Comcast violated consumer protection laws by using deceptive advertisements to promote its long-term contracts without clearly disclosing the full monthly price and terms of its contracts for cable services, including the possibility of increasing monthly fees at any point during the long-term contracts.
Cable customers across the country have been plagued by rising cable fees that too often aren’t clearly disclosed when they sign up for these long-term contracts. It’s simply unfair for customers to supposedly ‘lock-in’ a long-term contract, only for cable companies to jack up the price — and then charge customers even more to cancel or downgrade their service if they can’t afford it.
Earlier this year, Consumer Reports launched “What the Fee?!,” an organization-wide effort to highlight surprising fees and charges across industries and help consumers fight back — first targeting the proliferation of surprise add-on cable fees just like ones addressed in this settlement.
“Cable customers across the country have been plagued by rising cable fees that too often aren’t clearly disclosed when they sign up for these long-term contracts. It’s simply unfair for customers to supposedly ‘lock-in’ a long-term contract, only for cable companies to jack up the price — and then charge customers even more to cancel or downgrade their service if they can’t afford it,” said Jonathan Schwantes, senior policy counsel for Consumer Reports.
We applaud Massachusetts for taking action to protect their constituents from this deceptive marketing. But millions of customers nationwide have been lured-in to contracts by this kind of advertising to find that fees keep getting more expensive. We’ve heard from more than 100,000 consumers who’ve had enough of confusing cable fees. We urge states across the country to follow Massachusetts lead and crack down on the cable industry’s abuse of these types of add-on charges.
According to the Massachusetts AG, “Comcast failed to adequately disclose fees that typically increased customers’ monthly bills by 40 percent above the advertised price. These customers were required to pay early termination fees of up to $240 to cancel long-term contracts, even when they downgraded Comcast services to a more affordable monthly package.”
Schwantes added, “We applaud Massachusetts for taking action to protect their constituents from this deceptive marketing. But millions of customers nationwide have been lured-in to contracts by this kind of advertising to find that fees keep getting more expensive. We’ve heard from more than 100,000 consumers who’ve had enough of confusing cable fees. We urge states across the country to follow Massachusetts lead and crack down on the cable industry’s abuse of these types of add-on charges.”
After asking consumers to share their experiences with add-on fees, Consumer Reports received an overwhelming amount of complaints about the fees imposed by the cable industry. Additional add-on charges, such as “broadcast TV fees” and “regional sports fees,” are inflating consumers’ cable bills each month, with some of these fees increasing as much as 50 percent per year. The consumer organization has also has endorsed federal legislation (the TRUE Fees Act), sponsored by Rep. Anna Eshoo, that would require service providers to advertise the total price of a service, including all fees, and provide protections for consumers who have been wrongfully charged.
To learn more about the What the Fee?! campaign and share your own experience with fees, visit www.WhatTheFee.com.
PLEASE NOTE: Consumer Reports can connect reporters with consumers who have been hit with a surprise or increasing cable fee. Contact Kara Kelber for more information.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2018 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2018 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.