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Cablevision May Owe You Up to $140 for Its Cable Box, But Only If You Ask

Phillip Dampier May 9, 2016 Cablevision (see Altice USA), Consumer News, Public Policy & Gov't Comments Off on Cablevision May Owe You Up to $140 for Its Cable Box, But Only If You Ask

cablevision boxIf you are or were a Cablevision cable-TV customer, the cable company may owe you up to $140 for overcharging you for their set-top box, but only if you ask.

Current and former subscribers in New Jersey, New York, and Connecticut will share the proceeds of a settlement fund proposed in federal court in response to a class action lawsuit (Marchese v. Cablevision Systems Corp.) that alleged Cablevision has been misrepresenting the need for its cable equipment dating back to 2004.

You probably qualify as a class member if you had cable television service and a Cablevision set-top box anytime between April 30, 2004 and March 9, 2016. Former subscribers will likely receive a check valued at $20-40. Current customers will be offered the option of a one-time bill credit of $20-40 or the opportunity to get free services from Cablevision valued at $50-140. The longer you’ve been a customer, the higher the value of the free services you may qualify for, including free premium movie channels or multi-room DVR service. If you already have both, you will only qualify for the bill credit.

optimumCustomers should register as a class member to guarantee a share of the settlement proceeds. Visit cableboxsettlement.com to register online, e-mail [email protected] or call 1-888-760-4871. The deadline to file a claim is Sept. 23, 2016.

The proceeds of the settlement will likely be distributed by the end of this year, after a fairness hearing scheduled for September to discuss the requested attorneys fee, estimated to be as high as $9.5 million.

As is often the case in class action lawsuits, the company being sued need not admit any wrongdoing, and Cablevision is proclaiming its innocence.

“Cablevision denies all of the claims and allegations in the lawsuit and notes that the settlement is subject to final approval of the court,” a company statement said. “We cannot comment further beyond the publicly available filings in the litigation.”

West Virginia Lawmakers Battle Slow Broadband; Propose to Fine ISPs for False Speed Claims

frontier speedFrontier Communications is the obvious target of an effort by members of West Virginia’s House of Delegates to embarrass the company into providing at least 10Mbps broadband service or face steep penalties if it does not stop advertising slow speed DSL as “High-Speed Internet.”

State lawmakers continue to be flooded with complaints about the poor performance of Frontier Communications’ DSL service, which customers claim delivers slow speeds, unreliable service, or no service at all.

Although Frontier frequently advertises broadband speeds of 10Mbps or faster, customers often do not receive the advertised speeds, and the service can be so slow it will not work reliably with online video services.

West Virginia’s broadband problems remain so pervasive, the state legislature this year will entertain several broadband improvement measures, including a proposal to spend $72 million to build a publicly owned middle mile fiber optic network. The bill’s sponsor, Sen. Chris Walters (R-Putnam) claims the new fiber network would boost Internet speeds, improve service, and force down broadband pricing.

With cable broadband available only in major communities, much of West Virginia is dependent on DSL service from Frontier Communications, the telephone company serving most of the state. That is a unique situation for Frontier, which typically serves smaller and medium-sized cities in-between other communities serviced by larger providers like Verizon, AT&T, and Qwest/CenturyLink. Frontier’s problems meeting customer expectations have been well heard in Charleston, the state capitol, if only because most members of the state legislature have Frontier customers in their districts.

Legislators have found they have little recourse over a business that operates largely without regulation or government oversight, as Delegate John Shott (R-Mercer) told the Charleston Gazette. Shott heads the House Judiciary Committee and gets plenty of complaints from his constituents.

“[Customers] feel they never get the speed the Internet providers represent,” said Shott. “There doesn’t seem to be any recourse or regulatory body that has any ability to cause that to change.”

In the absence of regulation or direct oversight, a class action lawsuit on behalf of Frontier DSL customers in the state is still working its way through court. In December 2015, a separate action by West Virginia Attorney General Pat Morrisey resulted in a settlement agreement with Frontier. The company agreed to guarantee at least 6Mbps speeds for around 28,000 customers, or give them a substantial monthly discount off their broadband bill.

frontier wvShott’s bill, HB 2551, targets “unfair or deceptive acts or practices” of Internet Service Providers that advertise fast speeds but never deliver them. The bill would expose a violating ISP to damages up to $3,000 per customer, a $5,000 state fine, and allow customers to walk away from any outstanding balance or contract:

It is an unfair or deceptive act or practice and a violation of this article for any seller or Internet service provider to advertise or offer to provide “high speed Internet service” that is not at least ten megabytes per second.

If a seller or Internet service provider violates […] this section, the consumer has a cause of action to recover actual damages and, in addition, a right to recover from the violator a penalty in an amount, to be determined by the court, of not less than $100 nor more than $3,000. No action brought pursuant to this subsection may be brought more than two years after the date upon which the violation occurred or the due date of the last scheduled payment of the agreement, whichever is later.

If a seller or Internet service provider violates […] this section, any sale or contract for service is void and the consumer is not obligated to pay either the amount due, the amount paid or any late payment charge. If the consumer has paid any part of a bill or invoice, or of a late payment fee, he or she has a right to recover the payments from the violator or from any [collection agency] who undertakes direct collection of payments or enforcement of rights arising from the alleged debt.

The Attorney General of this state shall investigate all complaints alleging violations […] and has a right to recover from the violator a penalty in an amount, to be determined by the court, of not less than $500 nor more than $5,000 per violation, with each advertisement or contract to sell or provide “high speed Internet” being a separate violation. The Attorney General also has the power to seek injunctive relief.

As of today, the bill counts Delegates J. Nelson, Border, Kessinger, Arvon, Moffatt, A. Evans, Wagner, Cadle, and D. Evans as sponsors.

Delegate Shott

Delegate Shott

“The list of sponsors of this bill [HB 2551] are from a broad geographic area,” Shott told the newspaper. “They’ve identified this as a problem in their areas.”

Some legislators believe West Virginia should enforce the FCC’s latest minimum definition of broadband – 25Mbps, but the Gazette reports that kind of robust speed definition could be difficult for a DSL provider to achieve without significant additional investment. Some worry companies like Frontier could have difficulty justifying further rural broadband expansion in a state traditionally challenged by its number of rural areas and difficult terrain.

Despite those difficulties, incumbent providers like Frontier, Suddenlink, and Comcast have not appreciated efforts to help expand public broadband networks in the state, including the proposal outlined in Sen. Chris Walters’ SB 315, which would authorize about $72 million to build a public middle mile fiber network that would be offered to ISPs at wholesale rates.

Frontier strongly objects to the project because it would use public dollars to compete with private businesses like Frontier. The phone company’s opposition raised eyebrows among some in Charleston, who note Frontier had no objections to accepting $42 million in state dollars in 2010 to construct and install a fiber network it now operates for hundreds of public facilities across the state and $283 million in federal dollars to expand rural broadband. The 2010 fiber project was rife with accusations of waste, fraud, and abuse. Critics allege Frontier overcharged the state, installing service for $57,800 per mile despite other providers routinely charging about $30,000 a mile in West Virginia.

The West Virginia Cable Television Association, representing cable operators in the state, called the project a money-waster, noting it would not result in a single new hookup for broadband service. Middle mile networks do not reach individual homes and businesses and the bill does not authorize the state to get into the ISP business.

Sen. Walters

Sen. Walters

Much of the support for the public network comes from smaller ISPs like Citynet, which predominately serves commercial customers, and equipment vendors like Alpha Technologies. Walters believes if West Virginia builds the network, broadband providers will come to use it. The state’s dominant cable and phone companies vehemently disagree. The cable association has launched an all-out PR war, hoping to attract opposition from conservative lawmakers with claims the project will mandate state and local governments to buy Internet connectivity exclusively from the state-owned network and would trample on corporate rights by using eminent domain to seize parts of the cable industry’s fiber networks to complete the state network.

Walters brushed away the accusations, telling the Gazette there is no mandate that state agencies use the network and there are no plans for the government to take any fiber away from a private company.

Cable operators prefer an alternative measure also introduced in the West Virginia Senate. SB 16 would grant tax credits of up to $500 per address for any phone or cable company that agrees to wire a previously unserved rural address. The bill would limit total tax credits to $1 million.

The difference between the two measures? Walters’ bill would use public money to build a public broadband network owned by the public and answerable to the state. The cable industry-backed proposal would use public money in the form of tax offsets to wire homes and businesses to broadband owned by private businesses answerable to shareholders.

$875 Million Class Action Lawsuit Against Comcast Settles for $50 Million; You Get a Coupon

Phillip Dampier September 28, 2015 Comcast/Xfinity, Consumer News, Public Policy & Gov't 11 Comments
Another satisfied customer

Another satisfied customer

After more than a decade of legal wrangling, a class action lawsuit originally valued at up to $875 million filed on behalf of Philadelphia-area cable customers accusing Comcast of rigging a cable monopoly has settled for $50 million.

A federal judge in Philadelphia has approved a considerably reduced payout to affected subscribers and ex-customers who earlier submitted a claim form.

Under the settlement, former Comcast cable customers in the Philadelphia area qualify for a $15 check. Current Comcast customers can choose a $15 bill credit, six free pay per view movies, or two free months of The Movie Channel. If you failed to file a claim form before the July closing date, enjoy The Movie Channel for two months at no charge — it represents your default damage settlement.

Comcast is happy the suit, originally brought in 2003, has now come to a close. So are the lawyers who brought the case, who will receive $15 million in fees.

The lawsuit accused Comcast of colluding with other cable companies to buy or swap area cable customers to form a regional monopoly in southeastern Pennsylvania, where it could safely raise prices and scare off would-be competitors. The suit sought refunds and damages up to $875 million for Comcast’s allegedly ill-gotten gains.

Comcast’s attorneys eventually mowed down much of the plaintiff’s case when they convinced the U.S. Supreme Court the class action was too broad, involving cable customers that were formerly served by other cable companies before they were snapped up by Comcast. Because any potential damages inflicted by Comcast’s rate hikes and service varied depending on the date of ownership transfer, it was impossible, the attorneys argued, to determine appropriate damages. The Supreme Court agreed with Comcast and eventually eliminated class members who lived outside of Philadelphia and the four counties that surround the city. Having gutted much of the case, the two parties reached a settlement amounting to a fraction of the original request for damages.

Customers seemed less than thrilled.

“The Movie Channel? Really?,” complained Linda Martinez of Philadelphia. “They already give that channel away like candy when you phone up Comcast and complain about their lousy service. I had it for six months and I never even found it on the TV.”

Frontier Tries to Force Arbitration in Class Action Case Over “No Contract” DSL

frontier wvA plea from unhappy Frontier Communications’ broadband customers in West Virginia to have their complaints about Frontier DSL heard by a judge will get a hearing before Lincoln County Circuit Judge Jay Hoke on Aug. 19.

The class action lawsuit claims Frontier deceptively advertises fast Internet service that in reality is often unreliable and delivers only 5-10 percent of the speeds advertised. Many West Virginians have no other broadband options.

In response, lawyers for Frontier Communications have fought to get the case dismissed. They want customers to take their complaints through Frontier’s binding arbitration dispute resolution process.

In 2011, Frontier changed its terms and conditions, adding a lengthy arbitration provision that forbids customers from bringing class action cases and generally limits the damages customers can receive. Frontier argues customers automatically agreed to the arbitration process by continuing to use Frontier’s broadband service after the changes were announced.

The attorneys bringing the case think Frontier’s insistence that customers are automatically bound by the company’s contractual terms and conditions is ironic.

“No contract. No signatures. No worries,” claims one Frontier ad. “There’s no contract. Yep, that’s right, no contract,” advertises another. Since 2013, Frontier has gone out of its way advertising broadband without the gotchas and hidden fees their competitors charge. “Frontier is now in the unenviable position of trying to enforce hidden terms in the very contracts they repeatedly represented did not exist,” argues the plaintiffs in a court document.

no contract

Some Frontier customers never realized they may have given up their right to bring a civil case against Frontier. The company first notified customers about this change in their terms and conditions in 2011 through a small message on Frontier invoices. Customers effectively agreed to those changes through their continued use of Frontier’s service, Frontier claimed. But the plaintiffs signed documents attesting they had never seen or heard of Frontier’s enforced arbitration policy. The lawyers bringing the case are not surprised. A copy of the changed terms and conditions obtained by Stop the Cap! shows the binding arbitration clause buried on page five of a leaflet rendered in very small print in very large paragraphs unlikely to be read or understood by many customers.

The current arbitration policy is reproduced below. Have you read it?:

As explained more fully below and in the terms and conditions document, Frontier’s terms and conditions set forth important details about your relationship with Frontier including the requirement to resolve any dispute with Frontier by binding arbitration, on an individual basis, rather than through a lawsuit, jury trial or class action.  If you do not agree to Frontier’s terms and conditions, you may not use the Frontier service and must terminate service immediately.

DISPUTE RESOLUTION WITH FRONTIER BY BINDING ARBITRATION

PLEASE READ THIS CAREFULLY. IT AFFECTS YOUR RIGHTS.

Frontier encourages you to contact our Customer Service department if you have concerns or complaints about your service or Frontier. Generally, customer complaints can be satisfactorily resolved in this way. In the unlikely event that you are not able to resolve your concerns through our Customer Service department, we each agree to resolve all disputes through binding arbitration or a small claims court rather than lawsuits in courts of general jurisdiction, jury trials, or class actions. Arbitration is more informal than a lawsuit. Arbitration uses a neutral arbitrator instead of a judge or jury, allows for more limited discovery than in court, and is subject to very limited review by courts. Arbitrators can award the same damages and individual relief affecting individual parties that a court can award, including an award of attorneys’ fees if the law allows. For any non-frivolous claim that does not exceed $75,000, Frontier will pay all costs of the arbitration. Moreover, in arbitration you are entitled to recover attorneys’ fees from Frontier for your own dispute to the same extent as you would be in court.

In addition, under certain circumstances (as explained below), Frontier will pay you more than the amount of the arbitrator’s award if the arbitrator awards you an amount that is greater than what Frontier has offered you to settle the dispute.

Arbitration Agreement:

(a) You and Frontier agree to arbitrate all disputes and claims between us. This agreement to arbitrate is intended to be broadly interpreted. It includes, but is not limited to, all claims arising out of or relating to any aspect of our relationship, whether based in contract, tort, statute, fraud, misrepresentation or any other legal theory, that arose either before or during this or any prior Agreement, or that may arise after termination of this Agreement. It also includes claims that are currently the subject of purported class action litigation in which you are not a member of a certified class. References to “Frontier,” “you,” and “us” include our respective subsidiaries, affiliates, agents, employees, predecessors in interest, successors, and assigns, as well as all authorized or unauthorized users or beneficiaries of Frontier Broadband under this or prior Agreements between us.

Notwithstanding the foregoing agreement, Frontier agrees that it will not use arbitration to initiate debt collection against you except in response to claims you have made in arbitration. In addition, by agreeing to resolve disputes through arbitration, you and Frontier agree to each unconditionally waive the right to a trial by jury or to participate in a class action, representative proceeding, or private attorney general action. Instead of arbitration, either party may bring an individual action in a small claims court for disputes or claims that are within the scope of the small claims court’s authority. In addition, you may bring any issues to the attention of federal, state, or local agencies, including, for example, the Federal Communications Commission. Such agencies can, if the law allows, seek relief against us on your behalf.

This agreement evidences a transaction in interstate commerce, and thus the Federal Arbitration Act governs the interpretation and enforcement of this provision, even after the agreement is terminated.

(b) A party who intends to seek arbitration must first send to the other, by certified mail, a written Notice of Dispute (“Notice”). The Notice to Frontier should be addressed to: Frontier Communications, Legal Department – Arbitration, 3 High Ridge Park, Stamford, CT 06905 (“Notice Address”). The Notice must (1) describe the nature and basis of the claim or dispute; and (2) set for the specific relief sought (“Demand”). If Frontier and you do not reach an agreement to resolve the claim within 30 days after the Notice is received, you or Frontier may commence an arbitration proceeding. During the arbitration, the amount of any settlement offer made by Frontier or you shall not be disclosed to the arbitrator until after the arbitrator determines the amount, if any, to which you or Frontier is entitled.

(c) The arbitration will be governed by the Consumer Arbitration Rules (“AAA Rules”) of the American Arbitration Association (“AAA”), as modified by these Terms of Service, and will be administered by the AAA. Procedure, rule and fee information is available from the AAA online at http://www.adr.org, by calling the AAA at 1-800-778-7879, or by calling Frontier at 1-877-462-7320, option 3. The arbitrator is bound by the terms of this Agreement. All issues are for the arbitrator to decide, except that issues relating to the scope and enforceability of the arbitration provision, including the scope, interpretation, and enforceability of section (f) below, are for the court to decide. If your claim is for $25,000 or less, you may choose whether the arbitration will be conducted solely on the basis of documents submitted to the arbitrator, through a telephonic hearing, or by an in person hearing as established by the AAA Rules. If your claim exceeds $25,000, the right to a hearing will be determined by the AAA Rules. Unless Frontier and you agree otherwise, any in person hearings will take place at a location that the AAA selects in the state of your primary residence unless you and Frontier agree otherwise. Regardless of the manner in which the arbitration is conducted, the arbitrator shall issue a reasoned written decision sufficient to explain the essential findings and conclusions on which the award is based.

Frontier agrees to pay your AAA filing, administration, and arbitrator fees (“AAA fees”) for claims for damages of up to $75,000 and for claims for non-monetary relief up to the value of $75,000, as measured from either your or Frontier’s perspective (but excluding attorneys’ fees and expenses). After Frontier receives notice that you have commenced arbitration, it will promptly reimburse you for your payment of the filing fee, unless your claim is for greater than $75,000. (The filing fee currently is $200 but is subject to change by the AAA. If you are unable to pay this fee, Frontier will pay it directly upon receiving a written request.) In addition, Frontier will not pay your share of the AAA fees if the arbitrator finds that either your claim or the relief sought is frivolous or brought for an improper purpose, as measured by the standards of Federal Rule of Civil Procedure 11(b). In such case, the payment of AAA fees will be governed by the AAA Rules, and you agree to reimburse Frontier for all monies previously disbursed by it that are otherwise your obligation to pay under the AAA Rules. If you initiate an arbitration in which you seek relief valued at more than $75,000 (excluding attorneys’ fees and expenses), as measured from either your or Frontier’s perspective, the payment of AAA fees will be governed by the AAA Rules.

(d) If Frontier offers to settle your dispute prior to appointment of the arbitrator and you do not accept the offer, and the arbitrator awards you an amount of money that is more than Frontier’s last written settlement offer, then Frontier will pay you the amount of the award or $5,000 (“the alternative payment”), whichever is greater.
If Frontier does not offer to settle your dispute prior to appointment of the arbitrator, and the arbitrator awards you any relief on the merits, then Frontier agrees to pay you the amount of the award or the alternative payment, whichever is greater. The arbitrator may make rulings and resolve disputes as to the payment and reimbursement of fees, expenses, and the alternative payment at any time during the proceeding and upon request from either party made within fourteen (14) days of the arbitrator’s ruling on the merits.

(e)  Although Frontier may have a right to an award of attorneys’ fees and expenses if it prevails, Frontier agrees that it will not seek such an award.

(f) You and Frontier agree to seek, and further agree that the arbitrator may award, only such relief—whether in the form of damages, an injunction, or other non-monetary relief—as is necessary to resolve any individual injury that either you or Frontier have suffered or may suffer. In particular, if either you or Frontier seek any non-monetary relief, including injunctive or declaratory relief, the arbitrator may award relief on an individual basis only, and may not award relief that affects individuals or entities other than you or Frontier. You and Frontier agree that we each may bring claims against the other only in an individual capacity and not as a plaintiff or class member in any purported class, representative, or private attorney general proceeding. Furthermore, unless both you and Frontier agree otherwise in writing, the arbitrator may not consolidate more than one person’s claims, and may not otherwise preside over any form of a class, representative, or private attorney general proceeding. If a court decides that applicable law precludes enforcement of any of this paragraph (f)’s limitations as to a particular claim for relief, then that claim (and only that claim) must be severed from the arbitration and may be brought in court. Further, an arbitrator’s award and any judgment confirming it shall apply only to that specific case and cannot be used in any other case except to enforce the award itself.

(g) Notwithstanding any provision in these Terms to the contrary, you and Frontier agree that if Frontier makes any change to this arbitration provision during the period of time that you are receiving Frontier services, you may reject that change by providing Frontier with written notice within 30 days of the change to the Notice Address provided above and require Frontier to adhere to the language in this provision. By rejecting any future change, you are agreeing that you will arbitrate any dispute between us in accordance with the language of this provision.

arbitration pros consCorporations began to favor private arbitration over the civil courts several years ago, arguing arbitration would save money and lead to faster resolutions of customer complaints. Many customers and trial lawyers disagree, arguing arbitration favors the corporations that pay for arbitration programs, shields bad acts from public disclosure with confidentiality agreements, limits damage awards and prevents class action cases seeking relatively small amounts of damages for a large number of customers who would otherwise never bring a case to court. Early attempts by some companies to offer voluntary arbitration programs as an alternative to civil actions offered more limited benefits and many companies have since moved to mandatory, binding arbitration instead. Disputes subject to mandatory arbitration usually must be resolved through arbitration. The parties give up their right to sue in court, participate in a class action lawsuit, or appeal the arbitration decision.

The law firms handling the case against Frontier — Bailey Glasser in Charleston and Klein, Sheridan & Glazer in Huntington, are arguing Frontier customers cannot be bound by mandatory arbitration policies without evidence Frontier informed them of the program and can show evidence of their consent. In a lengthy argument to the judge, the attorneys argue Frontier can show neither. They point to Frontier’s website, which “buries” the terms and conditions as a tiny link at the bottom of their main web page. Customers must click that link, then find the link for the arbitration provision, then read and understand it. Notice about the arbitration policy originally came in occasional billing notices. Since the lawsuit was filed, Frontier has given more prominent mention of its terms and conditions, including its arbitration policy, on monthly billing statements.

Frontier’s defense is that the plaintiffs are misrepresenting the meaning of “no contract.” The company argues customers commonly understand that term to mean they will not be asked to sign a term contract for one, two, or three years, facing an early termination penalty if they seek to end the contract early. The fact Frontier advertises “no contract” does not mean there are no terms and conditions, the company’s attorneys argued.

A potentially weaker defense is Frontier’s claim that customers can be bound by a contract once they continue to use the service after a change in terms is published. Frontier admitted it could not prove the customers read and understood the change of terms notification or the new terms and conditions. It also never asked customers to directly consent, either in writing or by checking a box on a website, to the new terms and conditions. The plaintiffs also question the legality of Frontier reserving the right to unilaterally change any terms and conditions after a brief notification period and win consent of those changes if subscribers do not cancel service or, in some cases, opt out.

The attorneys call that “take it or leave it” Internet access from Frontier, often the only provider in large parts of rural West Virginia.

Find the terms and conditions link on the bottom of Frontier.com.

Find the terms and conditions link on the bottom of Frontier.com.

AT&T, Apple Settle Unlimited Data Class Action Lawsuit; Original iPad Owners Get Payout

Phillip Dampier October 1, 2013 AT&T, Consumer News, Data Caps, Wireless Broadband Comments Off on AT&T, Apple Settle Unlimited Data Class Action Lawsuit; Original iPad Owners Get Payout
The "breakthrough" unlimited data deal with AT&T didn't last long.

The “breakthrough” unlimited data deal with AT&T didn’t last long.

When Apple first introduced its AT&T 3G-equipped original iPad, both companies marketed it with an unlimited 3G wireless Internet plan that soon became unavailable for new buyers and left grandfathered customers enduring a speed throttle when AT&T decided you used their network too much.

Burned customers banded together and sued both Apple and AT&T for bait and switch unlimited broadband. The two companies have now decided to settle, and as well as a whopper payout for the attorneys who filed the class action case, original iPad owners are going to share the proceeds:

  • Customers purchasing a 3G-ready iPad before June 7, 2010 will receive a $40 check from Apple, even if you still have a grandfathered unlimited data account.
  • Customers purchasing a 3G-ready iPad before June 7, 2010 who never activated an AT&T unlimited tablet mobile data plan will get a $20 discount off AT&T’s current $50 a month data add-on for up to one year.

Customers complained the steep price premium they paid for a 3G-equipped iPad wasn’t worth Apple’s asking price once AT&T removed the unlimited data option that Steve Jobs called part of a breakthrough deal.

Customers will not receive any awards until after February of next year, when the settlement is expected to be approved.

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