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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.

Fox Nears Deal With Charter to Keep FX and Fox Regional Sports on the Dial

Phillip Dampier April 20, 2017 Charter Spectrum, Consumer News Comments Off on Fox Nears Deal With Charter to Keep FX and Fox Regional Sports on the Dial

Fox Networks Group is nearing a deal with Charter Communications that will keep several Fox-owned channels from disappearing from the Spectrum cable dial.

Recently, Fox has stopped running ads attacking Charter’s potential disruption of FX, National Geographic, and a number of Fox regional sports networks. Fox has also extended its deadline several times, and Fox programming continues uninterrupted on Charter’s cable systems as the talks continue.

Now FNG president and COO Randy Freer is ready to say publicly, “we’re working out the issues.”

Broadcasting & Cable reports one of those issues could be the ongoing lawsuit between Fox News Channel and Charter that was filed after acquiring Time Warner Cable. Charter began paying Time Warner Cable’s considerably lower FNC affiliate fee in markets where Charter’s original cable systems were under contract at a higher rate. One part of the agreement may be a settlement of that lawsuit.

There is no word on exactly when a final agreement will be reached, but it is increasingly unlikely the negotiations will result in any dropped channels for Charter customers.

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.

Judge Set to Hear N.Y. v. Charter Internet Speed Suit Forced to Recuse; He’s a Subscriber

Judge Engelmayer

New York Attorney General Eric Schneiderman will have to wait to bring his lawsuit claiming Charter/Spectrum is ripping off New York consumers with false speed claims until the courts can find a judge that isn’t a Charter/Spectrum subscriber.

U.S. District Judge Paul A. Engelmayer recused himself from hearing the case in state court Wednesday because he has a conflict of interest – he’s a Charter/Spectrum customer and could receive monetary damages if the cable company is found culpable.

“I am obligated to recuse,” Judge Engelmayer said, while also apologizing for not doing so earlier. As a former Time Warner Cable customer, he was unfamiliar with the Spectrum brand and only recently realized Charter Communications had acquired Time Warner Cable. “I can barely use a toaster. I have no idea what internet service I subscribe to.”

Charter Communications is trying to get the case heard in a presumably more friendly venue – federal court, and the case is on hold until Schneiderman completes his argument to have the case heard by a New York court. Charter argues that Schneiderman should not be allowed to bring enforcement actions under state law in state courts just because he is dissatisfied with the performance of the FCC.

The New York Attorney General brought the action after allegedly finding extensive evidence Time Warner Cable was not delivering the internet speeds the company promised in its advertising and in some cases left customers with equipment incapable of supporting the higher speeds customers purchased.

If Schneiderman can successfully keep the case in New York, the courts will have to find a judge with Verizon FiOS or no internet at all — a tall order in a state where Charter/Spectrum’s service area covers Buffalo to Manhattan and all points in-between.

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