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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.”

Analysis: FCC, Justice Dept. Ready to Approve Charter-Time Warner Cable-Bright House Merger

charter twc bhThe Justice Department and FCC Chairman Thomas Wheeler are prepared to accept a massive $55 billion merger between Charter Communications, Time Warner Cable, and Bright House Networks, but at a cost of stringent conditions governing the creation of America’s second largest cable conglomerate.

In a joint agreement with the U.S. Department of Justice and the FCC, Charter executives have agreed to do nothing to harm online video competition or implement usage caps or usage-based billing for at least seven years. Charter will also be forced to broaden its cable service to reach at least two million additional homes, some already served by other providers, setting the stage for potential head-to-head competition between two closely-matched competitors.

The deal will directly affect 19.4 million customers of the three companies, which will eventually combine under the Charter Communications brand name and marketing philosophy — selling customers simplified television, phone, and broadband packages that reduce customer options. Little is expected to change for the rest of 2016, however, with Time Warner Cable and Bright House likely to continue operations under existing packaging and pricing until sometime in 2017. Technicians told Stop the Cap! earlier in April they were told not to acquire new outfits with the Time Warner Cable logo and branding, and the cable company is also making preparations to gradually repaint its massive fleet of vans and service vehicles with the Charter logo.

President Obama Expected To Nominate Rep. Mel Watt For Director Of The Federal Housing Finance Agency

Wheeler

Most of the concessions seemed to have originated from FCC Chairman Thomas Wheeler, who has been one of the strongest proponents of online video competition, improved broadband, and direct head-to-head competition between cable operators. The Justice Department focused its attention on challenging the cable industry’s almost-united front against online video competition. Under former CEO Glenn Britt’s leadership, Time Warner Cable was considered “the industry leader” in contract language that guaranteed it would share the lowest price negotiated by any other cable, satellite, telephone company or online video provider. Those agreements also often included clauses that restricted programmers from putting streamed programming online for non-subscribers. That explains why cord-cutters frequently run into barriers watching networks online unless they can prove they are already a pay-TV customer.

Under conditions from the Justice Department, those sections of agreements with Charter, Time Warner Cable and Bright House Networks will become invalid and unenforceable. But that doesn’t mean restrictions will disappear overnight. Comcast, Cox, Cablevision, and other cable companies also enforce similar conditions which will be unaffected by the Justice Department decision, at least for now. But the precedent has sent shudders across an industry concerned about protecting its still-profitable cable TV business, under assault from increased programming costs and a greater reluctance by consumers to tolerate annual rate increases.

analysisGene Kimmelman, chief executive of consumer interest group Public Knowledge, told the Wall Street Journal the conditions were “a clear signal to the content industry and entertainment companies that the enforcement agencies are giving them a green light to grow online video and experiment as a direct competitor to cable, and they will prevent cable from interfering.”

Of greater interest to consumers are the deal conditions proposed by Chairman Wheeler. As Stop the Cap! reported almost a year ago, sources told us the FCC would “get serious” about data caps if companies like Comcast imposed them on customers nationwide. At the moment, Comcast is testing caps affecting just under 15% of their total customer base, already generating thousands of customer complaints with the FCC in response. Although Charter promised three years of cap-free service, Wheeler and his staff obviously felt it was important to send a message that they agree with cap opponents that data caps are more about preventing competition than technical need. By making long term data cap prohibition a core part of a settlement agreement with Charter, Wheeler sends a strong message to Comcast that the FCC isn’t drinking cable industry Kool Aid about the rationale for usage caps and usage billing.

Some consumer groups worry Charter has overextended itself in debt over-acquiring other cable companies.

Some consumer groups worry Charter has overextended itself in debt over-acquiring other cable companies.

“New Charter will not be permitted to charge usage-based prices or impose data caps,” Wheeler said in a statement. “Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of internet traffic to broadband customers. Additionally, the Department of Justice’s settlement with Charter both outlaws video programming terms that could harm online video distributors (OVDs) and protects OVDs from retaliation– an outcome fully supported by the order I have circulated today. All three seven-year conditions will help consumers by benefitting OVD competition. The cumulative impact of these conditions will be to provide additional protection for new forms of video programming services offered over the Internet. Thus, we continue our close working relationship with the Department of Justice on this review.”

Wheeler is also intent on proving there is a viable market for cable operators overbuilding into new territories. To prove that point, Wheeler has gotten an agreement that Charter will introduce service to one million new customers where it will intrude on another operator’s service area and directly compete with it. The other provider has to already offer service at 25Mbps or greater. That could mean Charter competing directly with a cable company like Comcast or building service into an area already served by Verizon FiOS, AT&T U-verse, or another provider offering something beyond traditional DSL.

Copps

Copps

Another million customers just outside of areas served by the three cable companies may also finally get service, as Charter will be compelled to wire at least another million homes for cable service for the first time.

Despite the conditions, many consumer groups and former public officials remain unhappy the merger won approval.

“Creating broadband monopoly markets raises consumer costs, kills competition, and points a gun at the heart of the news and information that democracy depends upon,” said Michael Copps, a former Democratic commissioner at the FCC and a special adviser to the Common Cause public interest group. “FCC approval of this unnecessary merger would be an abandonment of its public interest responsibilities.”

“There’s nothing about this massive merger that serves the public interest. There’s nothing about it that helps make the market for cable TV and Internet services more affordable and competitive for Americans,” said Craig Aaron, president and CEO of Free Press. “Customers of the newly merged entity will be socked with higher prices as Charter attempts to pay off the nearly $27 billion debt load it took on to finance this deal. The wasted expense of this merger is staggering. For the money Charter spent to make this happen it could have built new competitive broadband options for tens of millions of people. Now these billions of dollars will do little more than line the pockets of Time Warner Cable’s shareholders and executives. CEO Rob Marcus will walk away with a $100 million golden parachute.”

Wheeler’s draft order is likely to receive a final vote in the coming days before the Commission. The only remaining holdout is California’s telecom regulator, which is expected to reach a decision by May 10.

Frontier Agrees to $150 Million Settlement for West Virginia DSL Customers; A 2nd Lawsuit Continues

frontier wvFrontier Communications had to be chased by West Virginia Attorney General Patrick Morrisey to improve broadband speeds for at least 28,000 DSL customers who thought they were buying 6Mbps DSL service but ended up with maximum speeds of 1.5Mbps or less.

Frontier today agreed to a settlement with state officials to spend an extra $150 million to boost DSL speeds for rural customers around the state and offer deep discounts for affected customers until they can receive at least 6Mbps service. Today’s settlement has no impact on a separate class action lawsuit brought by Frontier customers who accuse the company of throttling broadband speeds to save money and reduce traffic on its network.

The agreement is the largest, independently negotiated consumer protection settlement in West Virginia history and is expected to improve broadband service over the next three years.

“This agreement is a game changer for the Mountain State,” Morrisey said. “The settlement helps consumers receive the high-speed service they expected, while directing significant monies to help fix connectivity issues that consistently keep our state from achieving economic success.”

For at least two years, Frontier customers sent Morrisey’s office complaints stating they were not getting the speed and performance Frontier advertised for its DSL service. While the company told both customers and investors it had blanketed West Virginia with speeds “up to 6Mbps,” many customers discovered the phone company locked their modems to receive no better than 1.5Mbps.

Attorney General Morrisey

Attorney General Morrisey

Frontier denied any allegation of wrongdoing and says it entered into the settlement to resolve disputed claims without the necessity of protracted and expensive litigation. But it will cost the company at least $150 million in additional upgrades, not including the $180 million Frontier already earmarked for broadband expansion in West Virginia, partly subsidized by the ratepayer-funded Connect America Fund.

About 28,000 customers identified by Frontier with modems the company provisioned for service at speeds of 1.5Mbps or lower will begin seeing an ongoing credit applied to their bills beginning Jan. 25, 2016, reducing the price of Frontier’s DSL service to $9.99 a month.

Affected customers can verify if they are included in the settlement on a special website Frontier has set up for its West Virginia customers.

The discounts will continue individually for each customer until the company can demonstrate it can deliver the 6Mbps speeds customers in West Virginia paid to receive. New Frontier DSL customers with speeds no better than 1.5Mbps will also qualify for the discount. Those with modems locked at speeds above 1.5Mbps but still getting less than 6Mbps will not benefit from this settlement, but may still get relief from a separate class action lawsuit covering customers in the state being heard in Lincoln County.

Last week, Lincoln County Circuit Judge Jay Hoke rejected an effort by Frontier to have the class action case dismissed. The company insisted its terms and conditions forbade customers from taking Frontier to court, requiring them to pursue arbitration instead.

fine printJudge Hoke rejected Frontier’s arguments, finding the phone company “buried” the arbitration clause in fine print on its website and on the last pages of customer billing inserts. Hoke also ruled Frontier was attempting to retroactively apply its arbitration clause years after customers initially signed up for broadband service.

“We are finally going to get our day in court,” Michael Sheridan, a Frontier customer in Greenbrier County and Stop the Cap! reader told the Charleston Gazette. Sheridan is suing Frontier over its poor performance in West Virginia. “We think this lawsuit is the best chance we’ll ever have of bringing real Internet to rural West Virginia.”

Frontier argued if customers were dissatisfied with its DSL service, they could have canceled but never did. The company did not mention many of the affected customers have no other options for broadband service except satellite Internet, which receives poor reviews.

“We respectfully disagree with the court’s ruling,” said Frontier spokesman Andy Malinoski. “In our view, arbitration provides for fair resolution of consumer concerns that is quicker, simpler, and less expensive than lawsuits in court. We plan to appeal.”

Frontier’s decision to appeal might take longer and cost more than addressing problems for at least some of the affected customers.

lincoln countyJudge Hoke also took a dim view of Frontier’s style of disclosing changes to its terms and conditions.

‘On the website, computer users must scroll to the bottom of the page and click on a “Terms & Conditions” link that’s “buried among 25 other links,” then click on two other links to find the arbitration provision that denies customers’ rights to a jury trial,’ Hoke wrote in his order. ‘There’s no button to click or box to check that allows customers to agree to Frontier’s terms. In monthly bills, the arbitration clause shows up one time on the “fourth and last page” of an insert and another time in “miniscule font,” Hoke found.

Customers would have to be psychic to guess Frontier had important news restricting their right to take a dispute to court.

“There is no reason whatsoever for a customer to turn to the last page,” Hoke wrote. “Additionally, the bills contain no prompting that customers should flip to the last page for information concerning Frontier’s desire to alter the customer’s right to a jury trial.”

While Frontier pursues its appeal at the state Supreme Court, Frontier is expected to lose million in revenue from the settlement with the Attorney General.

“The reduced rate gives Frontier a strong incentive to raise speeds for these customers,” Morrisey said.

Another provision in the settlement requires Frontier to pay $500,000 to the state’s Consumer Protection Fund. That payment will offset investigative and monitoring expenses in addition to helping defray the costs of transitioning consumers to higher Internet speeds.

Frontier spokesman Andy Malinoski said the company had planned to address the issues all along. He said the settlement will accelerate the improvements.

West Virginians seeking more information about the maximum speed their modem is provisioned to receive can call Frontier at 1-888-449-0217 for more information.

Those with further questions can contact the Attorney General’s Consumer Protection Division at 800-368-8808 or visit the office online at www.wvago.gov.

Get Your Share of a $576+ Million Settlement for 10+ Years of CRT Monitor Price Fixing

Phillip Dampier October 6, 2015 Consumer News, Video 2 Comments
These old CRT monitors probably sitting in your garage or basement are still worth something after all.

These old CRT monitors probably sitting in your garage or basement are still worth something after all.

If you purchased a boat-anchor-weight CRT monitor for your personal computer or a television set between March 1, 1995 and November 25, 2007, you may be owed a significant settlement from the $576 million dollar fund various manufacturers have set aside to pay class action damage claims.

The settlements, to be divided by consumers and businesses who overpaid for a TV or computer monitor as a result of alleged price-fixing, is likely to result in many households qualified to receive a check for $100 or more, even after the lawyers get their share. For now, only residents in certain states are qualified for settlement payments, but additional lawsuits are moving forward, so if your state isn’t qualified now, it might be later.

You have until December 7, 2015 to file your claim online or by mail for this settlement round. It takes only a few minutes to complete the form.

Individuals and businesses qualify for money from this settlement if they purchased a CRT or product containing a CRT, such as a TV or computer monitor, in the following states for their own use and not resale. You do not have to live in these states to qualify, if you purchased your television or monitor from a retailer (online/brick and mortar) with a presence in these states:

  • Arizona, California, Florida, Iowa, Kansas, Maine, Michigan, Minnesota, Mississippi, New Mexico, New York, North Carolina, North Dakota, South Dakota, Tennessee, Vermont, West Virginia, Wisconsin or the District of Columbia between March 1, 1995 and November 25, 2007
  • Hawaii between June 25, 2002 and November 25, 2007
  • Nebraska between July 20, 2002 and November 25, 2007
  • Nevada between February 4, 1999 and November 25, 2007

settleThe huge class action case has been in the works for years and alleges that defendants and co-conspirators conspired to raise and fix prices for CRT monitors (the ones you probably used before you bought your first flat panel LCD monitor). The alleged scam ran for more than a decade and several manufacturers have agreed to settle to make the case go away without admitting guilt.

The collective law firms involved in the case have asked for no more than one-third of the settlement, a reasonable amount in light of many other class action cases that leave consumers with nothing more than a low value coupon or “spare change” reimbursement checks. Because the alleged price-fixing lasted over a decade, many households will be able to claim settlement reimbursement for multiple televisions and computer monitors.

CPT, Philips, Panasonic, LG, Toshiba, Hitachi, Samsung SDI, and Thomson/TDA have agreed to settlements, and these manufacturers made the cathode ray tubes for several third-party brands. The largest manufacturer not a part of this lawsuit is Sony, and those monitors and televisions are excluded from this settlement.

Because these purchases occurred so long ago, you are not expected to have the receipt, the computer monitor, or television still in your possession. Any reasonable claim will be accepted without documentation. If your home or business is claiming what we estimate to be more than a combined five televisions and computer monitors, it will probably be audited and some form of reasonable documentation (picture, receipt, owner’s manual, credit card statement, etc.) will be required to prove your claim.

Here are the television and computer monitor brands involved in this round of settlements:

Chunghwa, LG, Philips, Panasonic, Hitachi, Toshiba, Samsung, Thomson and TDA.

Updated 7:00pm EDT — This article was considerably rewritten shortly after publication because it initially addressed a different settlement affecting “direct purchasers” who bought monitors direct from manufacturers. The updated details seen above reflect a settlement involving “indirect purchasers,” defined as those who bought monitors from a third-party retailer, such as Best Buy, Amazon.com, your local computer store, etc. The “indirect purchasers” settlement will reach a larger number of consumers and businesses who read Stop the Cap!, so we updated the article. If you already filed a claim using the original link seen in the earlier article, you will need to re-file using the corrected links seen above. The worst that can happen is the settlement administrator will request a clarification. It will not affect your eligibility. We apologize for any confusion this caused.

[flv]http://www.phillipdampier.com/video/Cathode Ray Tube CRT Indirect Purchaser Class Action.mp4[/flv]

Learn more about the CRT Settlement Fund and how you can collect a substantial settlement for your old computer monitor or television set. (37 seconds)

$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.”

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