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Cablevision Class Action Lawsuit Filed Over Cancellation Policy

A class action lawsuit has been filed in New York alleging Cablevision’s new owner — Altice USA, illegally changed the terms and conditions of its cancellation policy without adequate notice and was unjustly enriched charging millions for service departing customers did not receive.

New York resident Christopher Krafczek discovered he was still being billed for Altice’s Optimum cable service after canceling his service. He was caught in Altice’s change of its terms and conditions that took effect Oct. 10, 2016, which declared in all-capital letters Altice doesn’t give refunds for customers electing to cancel service before the end of a billing cycle:

Monthly Charges: Your monthly subscription begins on the first day following your installation date and renews thereafter on a monthly basis beginning on the first day of the next billing period assigned to you until cancelled by you. The monthly service charge(s) will be billed at the beginning of your assigned billing period and each month thereafter unless and until you cancel your Service(s). PAYMENTS ARE NONREFUNDABLE AND THERE ARE NO REFUNDS OR CREDITS FOR PARTIALLY USED SUBSCRIPTION PERIOD(S).

Krafczek and his attorneys are taking Altice to court claiming the cable company broke New York’s General Business Law § 349 for deceptive practices and for unjust enrichment. The class action lawsuit claims the cable operator failed to provide proper written notice of the change in its billing practices.

Customers canceling service before the end of a billing cycle can incur $100 or more in charges for cable service no longer received after turning in cable equipment as part of a move or to switch providers.

Altice is likely to claim Krafczek has no standing to bring the case because Cablevision/Altice subscribers are bound by a mandatory arbitration provision in their subscriber agreement. If a customer did not send Altice a written opt-out request within a limited window of time when mandatory arbitration was first introduced, Altice will likely claim that customer cannot sue or participate in a class action lawsuit.

Company officials told the Asbury Park Press last fall subscribers were given advance notice of the change of terms. A spokeswoman told the newspaper Cablevision included the change of terms notice in several monthly billing statements. The spokeswoman also claimed customer service representatives are trained to tell departing customers that billing would continue until the end of the billing cycle, allowing customers to schedule a disconnect at that time.

The case seeks a minimum of $50 or greater in damages for each class member, based on the amount billed after disconnecting service, attorney fees, and punitive damages.

The lawsuit claims customers in New York, Connecticut, and New Jersey who voluntarily disconnected cable service between October 2016 and May 3, 2017 paid more than $5 million for service they did not want to continue receiving.

The law firm of Mayer Brown LLP is handling the case.

Class Action Lawsuits Hit Cable Modem Manufacturers Over Widely-Reported Defect

Phillip Dampier April 26, 2017 Consumer News, Public Policy & Gov't 1 Comment

The Netgear CM700 is the target of a class action lawsuit filed in California.

As consumers increasingly spend money out-of-pocket to acquire their own cable modems to avoid leasing fees, alleged defects in those modems are spurring class action lawsuits to force manufacturers to fix the problems or issue refunds.

Two separate class action cases have been filed this month in Calfornia courts alleging “serious defects” in the Netgear CM700 and Arris SURFboard SB6190 — both newer DOCSIS 3.0 modems. But those modems are not the only ones affected by a serious firmware bug that can dramatically degrade internet performance.

Both modems rely on a relatively new Intel Puma 6 chipset, which some media outlets have also implicated in similar defects in a variety of cable modems including the Hitron CGNV4, the Compal CH7465-LG, and Puma 6-based modems like Virgin Media’s Hub 3 and Comcast’s top-end Xfinity boxes. Other newer modems branded by Linksys and Cisco also use the same system-on-chip and may also be affected.

The law firm of Schubert, Jonckheer & Kolbe, which is handling the Netgear legal case, says these cable modems may be affected:

  • Arris SB6190
  • Arris TG1672G
  • Arris TM1602
  • Super Hub 3 (Arris TG2492LG)  (commonly, Virgin Media)
  • Hitron CGN3 / CDA / CGNV series modems:
  • Hitron CDA-32372
  • Hitron CDE-32372
  • Hitron CDA3-35
  • Hitron CGNV4
  • Hitron CGNM-3552 (commonly, Rogers)
  • Hitron CGN3 (eg CGN3-ACSMR)
  • Hitron CGNM-2250 (commonly, Shaw)
  • Linksys CM3024
  • Linksys CM3016
  • TP-Link CR7000
  • Netgear AC1750 C6300 AC1900
  • Netgear CM700
  • Telstra Gateway Max (Netgear AC1900 / C6300) (Australia)
  • Cisco DPC3848V
  • Cisco DPC3941B / DPC3941T  (commonly, Comcast Xfinity XB3)
  • Cisco DPC3939
  • Compal CH7465-LG / Arris TG2492LG (commonly, Virgin Media Hub 3)
  • Samsung Home Media Server

Customers of Comcast, Charter, and Cox in the United States are impacted, as well as Rogers and Shaw customers in Canada and Virgin Media in the United Kingdom. The faster your internet connection, the more likely you will notice the defect, which causes dramatic latency spikes and degraded internet performance.

Intel admitted there was a problem back in December, but ISPs have been slow to respond.

Intel acquired the Puma family of chips from Texas Instruments in 2010, and the latest — the DOCSIS 3.0-compatible Puma 6 – uses an Atom x86 processor designed to handle up to 1.6Gbps connections. Unfortunately, the engineers who developed the firmware have tasked the Atom CPU with too much work while it also copes with processing network packets on a high-speed internet connection.

As The Register reported back in December:

Every couple of seconds or so, a high-priority maintenance task runs and it winds up momentarily hogging the processor, causing latency to increase by at least 200ms and, over time, about six per cent of packets to be dropped. It affects IPv4 and IPv6 – and it spoils internet gaming and other online real-time interaction that need fast response times.

This problem is easily seen in two graphs provided to the Register by a reader in Phoenix who plugged in two different modems to his Cox Cable internet connection. The blue lines represent latency and the red lines are packet loss. The test was performed with an ICMP ping running 33 times a second to his ISP’s DNS server over a 30 minute period.

An Arris SB6183 cable modem using an older Broadcom-based chipset exhibits no problems. (Image: The Register)

The Arris SB6190 running the new Intel Puma 6 chipset shows significant and readily identifiable problems. (Image: The Register)

Online gamers are among the most likely to be affected by latency problems.

“I excitedly swapped out my Arris SB1683 Broadcom modem for the new SB6190 Intel one expecting gigabit performance and immediately noticed slower webpage loads,” one gamer told The Register. “During first-person gaming, I was getting killed way more often for no apparent reason. I looked at an eight-year graph of latency from my home logs, and was horrified. Swapping back to my SB6183 solved all the issues.”

Arris also confirmed the problem.

“Arris has been working actively with Intel to address the issue, which resulted in some SURFboard SB6190 users reporting latency concerns,” a spokeswoman for Arris said. “We plan to quickly issue Intel’s firmware updates to resolve any latency. We remain committed to providing the best broadband experience for all users of Arris devices and regret any inconvenience this issue caused.”

Unfortunately, regardless of how fast modem manufacturers issue updated firmware to resolve the problem, end users will not notice a difference until their cable operator pushes that firmware update to customers. You cannot update cable modem firmware on your own, and any effort to do so would be futile because your provider would automatically replace it with an older “approved” version as soon as the unauthorized firmware change was identified.

The lawsuits seek a jury trial and damages forcing the manufacturers to recall the modems and either replace them or issue refunds to all affected customers. Customers who own an affected modem who want to participate in the class action case can fill out this form for more information.

Verizon Sued for “Knowingly Billing Customers for Fraudulent Charges”

Phillip Dampier April 5, 2017 Consumer News, Public Policy & Gov't, Verizon, Wireless Broadband Comments Off on Verizon Sued for “Knowingly Billing Customers for Fraudulent Charges”

Verizon will conveniently add fraudsters’ phone and service orders to your wireless bill until you catch the illegitimate charges and complain.

That is the basis of a new class action lawsuit filed in New York accusing the wireless company of billing customers for fraudulently obtained equipment and service.

Brooklyn lawyer Lowell Sidney told the New York Post it took five months of “autopay” charges almost $100 higher than normal before he noticed someone had obtained a new smartphone and service and billed it to his Verizon Wireless account.

“[Verizon] Fraud Services said that on Oct. 22, 2016, an unknown person entered a Best Buy store in Wesley Chapel, Florida, claimed to be [Sidney], and ordered a cellphone and phone service from Verizon,’’ the suit said. When Best Buy asked for ID, the imposter ran out of the store.

But that did not stop Verizon from running up Sidney’s bill for several months of phone financing installments and service charges.

Sidney’s lawyer told the newspaper it was clear the guy was a crook, but that did not stop Verizon from collecting money it knew didn’t belong to them.

Verizon’s fraud department confirmed Verizon’s corporate policy is not to notify customers about potential, suspected, or actual fraud. It is entirely up to customers to identify suspicious charges and prove to Verizon’s satisfaction those charges are illegitimate.

“The woman I spoke to was very candid — ‘That’s our policy,’” reported an outraged Sidney, and he’s suing to make the point Verizon should be doing a better job of protecting customers and should not be collecting money to which it is not entitled. He wants at least $75,000 in damages and wants other Verizon customers affected by fraud to receive settlements as well. He is also taking his business elsewhere after 17 years with Verizon.

“I am not sure if the competition provides comparable service, but to my knowledge, they don’t actively engage in defrauding their own customers,” Sidney said.

Sidney warns that “autopay” and electronic billing make it more difficult for consumers to scrutinize their bills and catch fraudulent charges because they have to seek out a monthly statement instead of getting one sent directly to them.

Nationwide Class Action Lawsuit Filed Against Charter Claiming False Advertising, Deficient Equipment

Phillip Dampier April 3, 2017 Broadband Speed, Charter Spectrum, Consumer News 22 Comments

Charter Communications is facing a second lawsuit related to false advertising about its ability to provide fast internet service and allegations the company knowingly supplied customers with deficient equipment.

Hart et al. v. Charter Communications Inc., is seeking certification as a nationwide class action from a judge in the U.S. District Court for the Central District of California.

The suit claims that Charter’s subsidiary Time Warner Cable purposely leased out modems and wireless routers it knew were incapable of achieving Time Warner Cable Maxx broadband speeds, consistently oversold its broadband network — resulting in slower internet speeds and performance than the company advertised, and raised customers’ bills without adequate notice.

The California lawsuit closely mirrors one filed in February by New York Attorney General Eric Schneiderman, and focuses on similar claims that Charter is engaged in “false representations and other wrongful business practices.”

The complaint claims:

  • The company willfully and intentionally advertised internet service it could not provide, claiming customers would receive internet service that was “fast” with “no buffering,” “no slowdowns,” “no lag,” “without interruptions,” “without downtime,” and “without the wait.”
  • Charter leased older generation modems and wireless routers to many of their customers that were incapable of supporting the promised internet speeds. Older technology modems could not provide the full benefit of Time Warner Cable Maxx speeds of 100-300Mbps, and company-provided network gateways delivered Wi-Fi service at speeds considerably lower than advertised.
  • Charter regularly failed to manage their network in a manner that would give customers consistent broadband speeds. Instead, “Defendants included too many subscribers in the same service group and provided too few channels for such subscriber, thus causing an internet ‘traffic jam’ (particularly during peak hours) that slowed every subscriber’s connection to speeds substantially below what was promised and paid-for. Indeed, even when consumers resorted to using wired connections, their Internet speeds still fell short of the promised speeds.”
  • Defendants also have adopted an unlawful and unfair practice of adding new fees or other charges to consumers’ bills without adequate notice and outside of the terms promised upon sign-up. In 2016, one customer signed up for a promotional “Spectrum Internet with Wi-Fi” plan with a fixed rate of $64.99 and a $10.00 “Promotional Discount,” making her plan cost a total of $54.99 per month. This amount was reflected in her February 2017 bill. However, on her March 2017 bill, the customer was automatically charged $59.99, a $5.00 increase of which she was not given adequate notice and which was improperly charged to her credit card automatically.

The lawyers bringing the case propose to include as class members anyone who purchased internet service from Time Warner Cable/Charter Communications nationwide, those who believed the company’s advertising that claimed speeds were fast and reliable, and customers enrolled in auto-pay who were not properly informed of changes in price or the terms of service. If certified, the potential size of the class action case could involve millions of customers.

DSL and the ISPs That Love It: There’s Better Broadband in the Back-End of Crete

Frontier is the dominant phone company in West Virginia.

Frontier is the dominant phone company in West Virginia.

Ann Sheridan and Michael Sheridan are probably not related, but they share one thing in common: lousy DSL broadband.

Michael Sheridan, who lives in Lewisburg, W.V., is the lead plaintiff in a dragged-out class action lawsuit against Frontier Communications in the state, alleging the phone company has engaged in marketing flim-flam promising lightning fast DSL Internet speeds many customers complain they just do not receive. Ann Sheridan is a university lecturer in Ireland who doesn’t enjoy her DSL service as much as she endures it, when it works.

They live thousands of miles apart, but the problems are largely the same: for-profit phone companies trying to get as much revenue out of copper-based networks suitable for 20th century landlines while spending as little possible on broadband-friendly upgrades.

The phone company that dominates West Virginia has done all it can to have the lawsuit thrown out of court, claiming its terms and conditions mandate dissatisfied customers seek arbitration instead of a class action case. Frontier claims it inserted that condition into its terms and conditions a few years ago. Sheridan and his attorneys are now before the West Virginia Supreme Court of Appeals defending the case.

Crete is an island and part of the territory of Greece.

Crete is an island and part of the territory of Greece.

Despite Frontier’s insistence it sells contract-free Internet with no tricks or traps, Sheridan argues Frontier traps customers with unilateral fine print.

“Cases from all over the country establish that a simple notation on a website cannot form an agreement to arbitrate, a line item at the tail end of a bill that does not even state the specifics of the agreement cannot form an agreement to arbitrate, and a bill stuffer purporting to unilaterally amend an existing contractual relationship does not form an agreement to arbitrate,” the respondent’s brief states.

Many West Virginians with Frontier DSL complain they never exceed 5Mbps in speed, even though they are buying plans that advertise double that.

“Frontier’s practice of overcharging and simultaneously failing to provide the high-speed, broadband level of service it advertises has created high profits for Frontier but left West Virginia Internet users in the digital dark age,” according to the brief.

County Kildare, Ireland

County Kildare, Ireland

Life isn’t much better for those driving 30 minutes outside of Dublin, where broadband can be charitably described as “rustic.” In fact, Sheridan claims there is better broadband in the back-end of Crete than what the average resident in suburban and rural Ireland can manage to get out of questionable copper wiring.

In one notorious incident Sheridan described as “stereotypically Irish,” broadband service was brought to its knees for a good part of County Kildare for over a week earlier this year after a group of retaliatory cows upset over the Irish winter worked their way through a broken fence and collectively took out their frustration on a transformer they knocked over, taking out Internet access in the process.

Just having broadband service available doesn’t solve the digital divide if that service becomes oversold and unreliable. Both Sheridans argue broadband connections often deteriorate as more customers sign up. Without corresponding capacity upgrades to keep up with sales, speeds slow and service can become troublesome.

Broadband nemesis

Broadband nemesis

Patrick Donnelly, a farmer and builder from Calverstown reports Internet speeds 20 years ago were faster than what he gets today from his DSL service.

“Currently, I think I’m on my fourth provider. There’s all these little start-ups and generally they’re not too bad when you sign up originally,” Donnelly reports from his farm in Ireland. ‘But as soon as an ISP signs up more customers, speeds seem to get slower and slower. During peak usage times, it can become unusable.’

In West Virginia, some customers believe if their Internet speeds are poor, they need to buy an upgraded, faster speed tier from Frontier to compensate. That is usually a waste of money if the existing network is either inadequate or overburdened with customer traffic. But many customers don’t realize this. Often, fine print in a company’s terms and conditions disclaims the very bold and prominent speed claims that most customers actually see. Sheridan argues Frontier’s fine print goes even further by limiting their customers’ recourse when advertising claims do not meet reality.

“Frontier’s position is that consumers are obliged to be on alert at all times – diligently reviewing the fine print on each and every page of promotional material received – for the possibility that they may be waiving their rights by doing nothing at all,” the brief states.

Sheridan admits her point she’d move to Crete to get better broadband would be funny if the implications were not so serious.

“Not having broadband is a bit like not having electricity or only having it intermittently,” Sheridan said.

“It’s not a luxury any more, this is a necessity,” Donnelly said in agreement. “We’re 20 years behind now it’s time we caught up.”

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