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Washington State Issues Ripoff Alert About Comcast’s Service Protection Plan

Phillip Dampier January 30, 2018 Comcast/Xfinity, Consumer News, Public Policy & Gov't 4 Comments

Washington’s Attorney General on Monday issued a consumer alert targeting Comcast for billing customers for its Service Protection Plan (SPP) without consent.

Attorney General Bob Ferguson announced in December new evidence obtained as part of his ongoing lawsuit against the cable and internet giant revealed that Comcast may have signed up more than half of all SPP subscribers without their consent. Since Ferguson filed an amended lawsuit, the Attorney General’s Office received more than 100 complaints from Comcast customers, including 74 about the SPP. Of those, more than 50 claim Comcast added the plan to their account without their consent.

Comcast markets the $5.99/mo plan as insurance against surprising service call fees or inside wiring replacement costs. But Ferguson accused Comcast of not clearly disclosing that its service plan does not cover one important and common expense customers with wiring problems could encounter — repairing defective wiring “wall-fished” inside walls. In many cases, SPP customers were told to hire an independent electrician to manage wall-fish installations and repairs.

Ferguson initially filed a $100 million lawsuit against Comcast in August 2016 alleging deceptive conduct and racking up more than 1.8 million violations of Washington’s Consumer Protection Act. More than half a million Comcast subscribers in the state subscribe to its SPP, delivering Comcast more than $73 million in revenue  from 2011-2015. Ferguson claims many customers were told they would be enrolled for free, only to later discover an ongoing $5.99 fee on each monthly bill.

“This new evidence makes clear that Comcast’s conduct is even more egregious than we first realized,” Ferguson said. “The extent of their deception is shocking, and I will hold them accountable for their treatment of Washington consumers.”

 

Ferguson

 

Comcast’s fight to keep Washington’s Attorney General from hearing how it markets its SPP

In May 2017, King County Superior Court Judge Timothy Bradshaw ordered Comcast to provide the Attorney General’s Office with “telephone calls that exist in which [Comcast] sold the SPP to Washington consumers.” In response to the court order, Comcast turned over to the Attorney General’s Office recordings of calls between Comcast and 1,500 Washington consumers whom Comcast signed up for the SPP.

The Attorney General’s Office analyzed a random sample of recorded sales calls between Comcast and 150 Washingtonians. Comcast did not even mention the SPP to nearly half the sample. Additional consumers in the sample explicitly rejected the SPP, but Comcast signed them up anyway. Consequently, Comcast enrolled more than half of these subscribers without their consent.

Even when Comcast actually mentioned the SPP on the sales call before signing consumers up for the SPP, Comcast continued to engage in deception. Comcast deceptively failed to disclose the SPP was a monthly recurring charge to 20 percent of the Washingtonians in the sample. Rather, Comcast often told subscribers the SPP was added for “free” to their account.

According to Comcast’s own data, more than 75% of SPP subscribers sign up via the telephone. Comcast operates call centers in Washington state, Colorado, Minnesota and Texas, as well as throughout the world in the Philippines, Mexico and Guyana. Comcast paid call center staff up to $5 for every SPP sale they made.

Comcast does not instruct its employees to send customers any information about the SPP via email, text message, mail, or refer the customer to Comcast’s website while the call is occurring and the customer is considering whether to enroll in the SPP. Rather, Comcast only provides oral representations about the SPP.

The Attorney General’s Office alleges this pattern of deception is a systemic issue throughout Comcast’s marketing and “sale” of the SPP, and represents potentially tens of thousands of new violations of the Washington state Consumer Protection Act.

Comcast had spent over a year fighting the Attorney General’s Investigative Demand notice that required the company to preserve and produce recordings between Comcast employees and customers who bought the SPP. In May 2017, Comcast’s attorneys finally admitted the company deleted 90% of the call recordings it was originally compelled to produce.

Damages

Ferguson is seeking full restitution of the $73 million Comcast collected from Washington subscribers along with penalties that will cost Comcast over $100 million if the company is found to be liable.

Ferguson is still enlisting affected customers in his legal effort. Check your bill — if you believe you’re being charged for the SPP without your consent, file a complaint with the Attorney General’s Office.

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FredH
FredH
6 years ago

The problem is $100M is a slap on the wrist – simply the “cost of doing business” to a company that had net earnings of $21B (billion with a “b”) in 2017

Matt K
Matt K
6 years ago

Destroying evidence is a crime. Where are the criminal charges?

kaniki
kaniki
6 years ago

Correct me if I am wrong, but I find it funny that they say “skilled technicians” in the same paragraph that says, we can not move our own outlet, and, we can not replace a cable that is in the wall.. Most coax run down walls is left loose.. meaning, all you need to do is connect the “new” wire to the “old” wire, with a barrel connector, and then pull it through.. If you can not do that, then how the heck can you advertise your techs as “skilled”?? Sounds like a joke of a bunch of techs to… Read more »

KB
KB
6 years ago

Now go after them for their deceptive Data Cap policies. I’m closing on a home in the Spokane area soon and terrified Comcast is my only real viable option for fast internet up there.

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