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Union Helps Sandy Victims Secure Cablevision Refunds; Lawsuit Threatened In Response

Phillip Dampier November 27, 2012 Cablevision (see Altice USA), Consumer News Comments Off on Union Helps Sandy Victims Secure Cablevision Refunds; Lawsuit Threatened In Response

Union members of the Communications Workers of America, unhappy that customers are not going to receive automatic service credits for the extensive outages caused by Hurricane Sandy, are robocalling possible Cablevision customers to help them secure refunds.

In response, Cablevision’s lawyers threatened to sue the union, claiming they were engaged in “deceptive and illegal” practices, and accused the union of stealing customer records.

Cablevision is one of the few holdouts that require customers to personally request service credits for outages caused by the October storm. Most providers in the hardest hit areas have issued automatic blanket credits for affected customers. Companies requiring customers to contact a customer service representative to request credit are assured many will not, either because of long hold times, other matters taking precedence, or simply because customers forget to ask.

Union officials say the robocalled numbers were gathered from publicly available phone records in the affected areas and did not come from Cablevision’s customer database. Cablevision also objected to the suggestion the union was calling “on behalf” of the cable company — a charge also denied by the union.

“We are just calling people in the affected area to let them know they are eligible for a refund and help them get it if they are entitled to it,” CWA organizer Tim Dubnau told the New York Daily News.

Callers who are interested in pursuing a claim are transferred by the union direct to Cablevision customer service for assistance.

Cablevision and the CWA have been at odds ever since the union began attempting to organize workers in Brooklyn and the Bronx.

The cable company is also facing a $250 million lawsuit filed separately on behalf of subscribers Irwin Bard, a retired businessman from Oyster Bay, N.Y. and his son Jeffery, a lawyer from Huntington.

 

Cablevision Subject of $250 Million Lawsuit Over Lack of Automatic Sandy Refunds

Phillip Dampier November 15, 2012 Cablevision (see Altice USA), Consumer News Comments Off on Cablevision Subject of $250 Million Lawsuit Over Lack of Automatic Sandy Refunds

Two Cablevision customers in Nassau and Suffolk counties are the lead complainants in a $250 million class action lawsuit filed Tuesday in New York State Supreme Court alleging the cable operator is illegitimately charging customers for service knocked out by Hurricane Sandy.

The suit claims that unlike other cable and phone companies in New York and New Jersey extending automatic service outage credits to impacted customers, Cablevision is only giving credits to customers who self-report outages within 30 days.

Cablevision was the hardest hit cable operator in the region, with its coastal service areas on Long Island, Connecticut, and New Jersey receiving the brunt of storm surges and wind-related damage. At least half of the company’s three million customers were without service after the storm hit Oct. 29. Nearly 80,000 customers are still without power and utilities are signaling some may wait until after Christmas before lights are back on. Some of the most devastated areas are not scheduled for restoration at all because those properties will have to be abandoned or rebuilt.

The plaintiffs claim Cablevision, “only agreed to rebate some of its most favored customers on a discretionary basis and in varying amounts, and only after the customers’ contacted Cablevision for the rebate.” The suit also alleges customers threatening to cancel service are getting the most generous rebates.

The suit suggests Cablevision should have known not to bill or accept money from customers that remain without service. Many Cablevision customers are on the company’s electronic billing and autopay programs, which will continue to deduct money from bank accounts for services customers cannot actually receive.

“The lawsuit misstates the facts and is without merit,” Cablevision said in a statement. “But lawsuits aside, we have an extremely broad and customer friendly credit policy following Sandy. Blanket or arbitrary credits for cable outages could shortchange customers because each case is different and our policy covers the entire period of time when Cablevision service was out, including when the service interruption was caused by the loss of electrical power.”

Cablevision says the amount of damage to its facilities is so extensive, it could impact the next quarter’s financial results. Company officials also admit some of their customers will not be coming back because their homes and businesses no longer exist.

Time Warner Cable Faces Class Action Suits in NY, NJ Over Modem Fees

Phillip Dampier November 14, 2012 Consumer News, Data Caps 2 Comments

Two class-action lawsuits were filed Tuesday on behalf of Time Warner Cable customers in 29 states to force the company to refund ill-gotten modem rental fees in violation of consumer fraud laws.

“It’s a massive hi-tech consumer fraud accomplished by low-tech methods,” said attorney Steven L. Wittels. “Send customers confusing notice of the fee in a junk mail postcard they’ll throw in the garbage, sock them with a $500 million dollar a year rate hike, then announce on your website that customer satisfaction is your #1 priority. That’s some way to deliver satisfaction.”

The context for the class action suit is that Time Warner Cable began imposing the fee Nov. 1 without giving customers appropriate notification. New York City residents had little more than two weeks notice in the form of a poorly printed postcard. Some residents in western New York and other cities have still not received notification from the cable company, either on bills or in the mail.

The two lawsuits were brought on behalf of Manhattan resident Kathleen McNally and Fort Lee, N.J. resident Natalie Lenett, but the suit asks the court to order refunds for all Time Warner Cable customers charged modem fees across their national service area.

The Consumerist thought the company’s failure to meet the timely notification requirement about the forthcoming modem rental fee might have the cable company dead to rights:

Pricing and Service Changes

Unless otherwise provided by applicable law, Time Warner Cable will notify you 30 days in advance of any price or service change. Notice of these changes may be provided on your monthly bill, as a bill insert, as a separate mailing, in the Legal Notice section of the newspaper, on the cable system channel(s) or through other written means.

But on closer examination, that provision only applies to pricing and service changes for Time Warner Cable’s television service, not broadband or home phone service.

In fact, Time Warner Cable’s new Subscriber Agreement has reserved the right to change just about anything it likes, just by updating the terms and conditions on its website:

We May Change our Customer Agreements

(a) We may change our Customer Agreements by amending the on-line version of the relevant document.  Unless you have entered into an Addendum that ensures a fixed price for a period of time (for instance, a Price Lock Guarantee Addendum), we may also change the prices for our services or the manner in which we charge for them.

(b) If you continue to use the Services following any change in our Customer Agreements, prices or other policies, you will have accepted the changes (in other words, made them legally binding).  If you do not agree to the changes, you will need to contact your local TWC office to cancel your Services.

(c) Any changes to our Customer Agreements are intended to be prospective only.  In other words, the amended version of the relevant document only becomes binding on you as of the date that we make the change.

One significant change Time Warner inserted in its Subscriber Agreement (the one printed in tiny print on tissue-thin paper, occasionally mailed with your bill) was deemed so important, it appears highlighted and in bold language:

Time Warner Cable now requires customers to submit disputes individually to binding arbitration, denying the right to bring or participate in any class action case. However, customers can opt-out of this provision simply by notifying the company through an online form. (You will need your Time Warner Cable account number.)

In practice, this would require McNally, Lenett, and millions of other customers to individually submit to a time-consuming arbitration proceeding — all to fight a $3.95 monthly fee. Few would bother. Wittels told The Consumerist the lawsuit still has merits because of other language Time Warner Cable maintains in its agreement which he believes holds the door open to a class action challenge.

Although customers are invited to purchase their own cable modem equipment to avoid the fee, the lawyers involved say the options are limited and expensive.

Stop the Cap!’s Election Guide for Broadband Enthusiasts

Tomorrow is election day in the United States. Stop the Cap! has reviewed both presidential candidates’ positions (or the lack thereof) as well as the past voting records and platforms of members of both major political parties. With this in mind, it is time for our election guide for broadband enthusiasts. Regardless of what candidate you support, please get out and vote!

Neither political party or candidate has been perfect on broadband advocacy or consumer protection.

We’ve been disappointed by the Obama Administration, whose FCC chairman has major problems standing up to large telecom companies and their friends in the Republican-led House of Representatives. Julius Genachowski promised a lot and delivered very little on broadband reform policies that protect both consumers and the open Internet. Both President Obama and Genachowski’s rhetoric simply have not matched the results.

Bitterly disappointing moments included Genachowski’s cave-in on Net Neutrality, leaving watered down net protections challenged in court by some of the same companies that praised Genachowski’s willingness to compromise. Genachowski’s thank you card arrived in the form of a lawsuit. His unwillingness to take the common sense approach of defining broadband as a “telecommunications service” has left Internet policies hanging by a tenuous thread, waiting to be snipped by the first D.C. federal judge with a pair of sharp scissors. But even worse, the FCC chairman’s blinders on usage caps and usage billing have left him unbelievably naive about this pricing scheme. No, Mr. Genachowski, usage pricing is not about innovation, it’s about monetizing broadband usage for even fatter profits at the expense of average consumers already overpaying for Internet access.

Obama

Unfortunately, the alternative choice may be worse. Let’s compare the two parties and their candidates:

The Obama Administration treats broadband comparably to alternative energy. Both deliver promise, but not if we wait for private companies to do all of the heavy lifting. The Obama Administration believes Internet expansion needs government assistance to overcome the current blockade of access for anyone failing to meet private Return On Investment requirements.

While this sober business analysis has kept private providers from upsetting investors with expensive capital investments, it has also allowed millions of Americans to go without service. The “incremental growth” argument advocated by private providers has allowed the United States’ leadership role on broadband to falter. In both Europe and Asia, even small nations now outpace the United States deploying advanced broadband networks which offer far higher capacity, usually at dramatically lower prices. Usually, other nations one-upping the United States is treated like a threat to national security. This time, the argument is that those other countries don’t actually need the broadband networks they have, nor do we.

The Obama Administration bows to the reality that private companies simply will not invest in unprofitable service areas unless the government helps pick up the tab. But those companies also want the government to spend the money with as little oversight over their networks as possible.

That sets up the classic conflict between the two political parties — Democrats who want to see broadband treated like a critically-important utility that deserves some government oversight in its current state and Republicans who want to leave matters entirely in the hands of private providers who they claim know best, and keep the government out of it.

FCC Chairman Julius Genachowski’s regular cave-ins for the benefit of Big Telecom brought heavy criticism from us for his “cowardly lion” act.

Just about the only thing the two parties agree on is reforming the Universal Service Fund, which had until recently been directing millions to keeping traditional phone service up and running even as Americans increasingly abandon landlines.

But differences quickly emerge from there.

The Obama Administration believes broadband is increasingly a service every American must be able to access if sought. The Romney-Ryan campaign hasn’t spoken to the issue much beyond the general Republican platform that market forces will resolve virtually any problem when sufficient demand arises.

Republicans almost uniformly vociferously oppose Net Neutrality, believing broadband networks are the sole property of the providers that offer the service. Many Republicans characterize Net Neutrality as a “government takeover” of the Internet and a government policy that would “micromanage broadband” like it was a railroad. Somehow, they seem to have forgotten railroad monopolies used to be a problem for the United States in the early 20th century. Robber barons, anyone?

President Obama pushed for strong Net Neutrality protections for Americans, but his FCC chairman Julius Genachowski caved to the demands of AT&T, Verizon, and the cable industry by managing Net Neutrality with a disappointing “light touch” for those providers. (We’d call it “fondling” ourselves.)

Democrats favor wireless auctions and spectrum expansion, but many favor limits that reserve certain spectrum for emerging competitors and for unlicensed wireless use. Republicans trend towards “winner take all” auctions which probably will favor deep-pocketed incumbents like AT&T and Verizon. The GOP also does not support holding back as much spectrum for unlicensed use.

Republicans have been strongly supporting the deregulation of “special access” service, critical to competitors who need backhaul access to the Internet sold by large phone companies like AT&T. Critics contend the pricing deregulation has allowed a handful of phone companies to lock out competitors, particularly on the wireless side, with extremely high prices for access without any pricing oversight. The FCC under the Obama Administration suspended that deregulation last summer, a clear sign it thinks current pricing is suspect.

Romney

Opponents of usage-based pricing of Internet access have gotten shabby treatment from both parties. Republicans have shown no interest in involving themselves in a debate about the fairness of usage pricing, but neither have many Democrats.

As for publicly-owned broadband networks, sometimes called municipal broadband, the Republican record on the state and federal level is pretty clear — they actively oppose community broadband networks and many have worked with corporate front groups like the American Legislative Exchange Council (ALEC) to ban them on the state level. Democrats tend to be more favorable, but not always.

The biggest problem broadband advocates face on the federal and state level is the ongoing pervasive influence of Big Telecom campaign contributions. While politicians uniformly deny that corporate money holds any influence over their voting, the record clearly indicates otherwise. Nothing else explains the signatures from Democrats that received healthy injections of campaign cash from companies like AT&T, and then used the company’s own talking points to oppose Net Neutrality.

But in a story of the lesser of two-evils, we cannot forget AT&T spends even more to promote Republican interests, because often those interests are shared by AT&T:

  • AT&T has spent nearly $900,000 on self-identified “tea party” candidates pledged to AT&T’s deregulation policies;
  • AT&T gave nearly $2 million to the Republican Governors Association — a key part of their ALEC agenda;
  • AT&T gave $100,000 to everyone’s favorite dollar-a-holler Astroturf group — The Heartland Institute, which opposes Net Neutrality and community broadband.

Six Strikes Copyright Enforcement Getting Ready to Launch: Torrents Are Primary Target

AT&T will begin sending out anti-piracy warning notices to subscribers caught downloading copyrighted content from torrent sites starting Nov. 28.

The new anti-piracy measures are part of a joint agreement between the Motion Picture Association of America (MPAA), the Recording Industry Association of America (RIAA), and five major national ISPs to help curtail content theft.

TorrentFreak obtained internal AT&T training documents that outline how AT&T will deal with customers suspected of illicit downloading. After a series of warnings, AT&T intends to block access to websites suspected of copyright infringement until a customer successfully completes a course on online copyright law. Eventually, those caught repeatedly downloading pirated movies and music could face legal action after AT&T turns over the identities of suspect customers. Gone from early draft proposals are suggestions that ISPs will throttle or suspend service altogether for repeat violators.

Late reports indicate that other ISPs participating in the copyright enforcement action — Cablevision, Comcast, Time Warner Cable and Verizon — will also launch their own programs on the same date.

Most at risk are customers who frequent peer-to-peer file sharing sites. Tracking BitTorrent traffic is a priority for the newly-launched Center for Copyright Information (CCI) — a joint venture run by the ISPs in coordination with the MPAA and RIAA.

While not all peer-to-peer file traffic consists of illicit swapping of copyrighted works, some high profile torrent sites are among the first choices for consumers looking for free movies or music. CCI believes its Copyright Alert System (CAS) is primarily an educational tool for consumers who may not realize they are stealing copyrighted content. With its “six warnings” policy, CCI wants consumers to take action to protect themselves, their Internet accounts, and home networks well before any legal action is taken.

The latest implementation of the Copyright Alert System has watered down some of its earlier provisions, which could have put a customer’s Internet account at risk of being speed throttled or canceled. For now, consumers will receive six warnings about any suspected copyright infringement:

  • The first three strikes carry no consequences and are intended to serve as informational warnings that the downloading of copyrighted content may be taking place;
  • The fourth and fifth strikes will trigger forced browser redirects to a copyright education page and an online course on copyright law that must be successfully completed before the customer can once again visit suspect websites;
  • Strike six means AT&T (and presumably other ISPs) will turn over the IP addresses of repeat offenders and comply with any subsequent court orders requesting the identity of the customer for possible legal action. AT&T does not say it will terminate the customer’s account, but does remind customers to be mindful of its Acceptable Use Policy, which does allow them to terminate service for illegal acts.

Edward Stroz

Consumers caught allegedly downloading copyrighted content can protest their innocence, but a $35 refundable filing fee is required to begin the arbitration process. If a consumer proves the files downloaded were not illegally obtained or that their account was flagged in error, they can have the warning canceled and get their filing fee refunded. But there are no penalties for CCI, its copyright tracking arm run by MarkMonitor, or the ISP if the copyright tracking system gets it wrong.

Critics of the copyright enforcement scheme claim it delivers too many benefits for CCI and its industry backers and insufficient protection for consumers misidentified during copyright infringement dragnets.

For-profit copyright tracking companies have made false allegations in the past, forcing CCI to hire an “independent and impartial technical expert” to verify the accuracy and security of the tracking technology used. CCI hired the firm of Stroz Friedberg as their expert.

Critics charge Stroz Friedberg is actually a recording industry lobbying firm, who worked with the RIAA for five years, earning $637,000.

Eric Friedberg

“It’s a disappointing choice, particularly in light of CCI’s professed desire to build public confidence in CAS and the fairness of its processes,” University of Idaho Law Professor Annemarie Bridy told TorrentFreak. “It would have been refreshing to see an academic computer scientist or some other truly independent party appointed to fill that important role.”

Bridy calls CCI’s Copyright Alert System lacking in transparency and stacked in favor of copyright holders, not consumers.

Stroz Friedberg’s appointment has also raised eyebrows among others that suggest their past lobbying violates the spirit of a Memorandum of Understanding signed by all parties requiring “independent and impartial” oversight.

“CCI’s choice of a former RIAA lobbying firm makes it clear that the copyright owner parties to the Memorandum of Understanding were more interested in appointing someone they trust than in appointing someone the public can trust,” Bridy adds.

Network World columnist Steven Vaughan-Nichols worries this is just the beginning of another copyright enforcement overreach:

The name of their game is to monitor your network traffic, with the help of your friendly ISP. Their justification for this is the usual made-up “facts” that content theft leads to “more than 373,000 jobs, $16 billion in lost wages, and $2.6 billion in lost taxes.” Yeah, I’m also sure someone downloading copyrighted porn leads to cats and dogs living together.

One reason I can’t buy into all this is that, as TorrentFreak points out, the Center’s expert who vouches that this all works is none other than Stroz Friedberg, a former RIAA lobbyist. Oh yeah, he doesn’t have bias for paranoid copyright protection companies.

What this means for you is that if your ISP is AT&T, Cablevision, Comcast, Time Warner, or Verizon, they’ll be watching your use of BitTorrent and letting CCI decide if you deserve some warnings, an end to your Internet service, or a full-out lawsuit.

[…] The RIAA, the MPAA, and other copyright “protectors” have never done anything for content creators. They’re all about protecting the businesses stuck with old, broken, pre-digital business models. Even that wouldn’t be so bad, except historically they’ve always vastly over-reacted.

We all know the stories of some poor slob who’s been slammed with tens of thousands of damages for downloading a song. What you may not know is that all the powers that be have to do is to claim something is copyrighted, whether it is or not, and multiple websites can be closed in minutes or your entire digital library can be destroyed.

Does that sound like paranoid fantasy? I wish.

[…] Oh yeah, I feel really sure that the CCI and friends are going to do a good job. Welcome to the new copyright world, same as the old, where you’re always considered guilty rather than that quaint idea of being considered innocent before proven otherwise.

CCI admits sophisticated pirates will probably never get caught by its Copyright Alert System, because most of them are moving to secured Virtual Private Network (VPN) technology that effectively masks their identities. TorrentFreak notes sales for VPN’s are skyrocketing, many headquartered far away from the reach of the United States in exotic, subpoena-proof locations like Cyprus, the Seychelles, Romania, and Ukraine.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/RT Thom Hartmann Copyright Alert System 3-20-12.flv[/flv]

RT’s Thom Hartmann presided over a debate about online copyright theft control measures proposed earlier this year by the entertainment industry and Internet Service Providers. Appearing with Hartmann are David Seltzer, Attorney & Mark Bledsoe. (March 20, 2012) (12 minutes)

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