In 2017, Charter-Spectrum was sued by then-New York Attorney General Eric Schneiderman over misleading internet speeds. The lawsuit alleged that their internet speeds were 80% slower than advertised.
The $174.2 million payout will be split: $75 million will go to active customers in the form. Of a $75 and $150 refund and then second amount, the $110 million will be provided through free streaming services and premium cable channels for 2.2 million subscribers.
This is the largest ever consumer payout by an internet service provider.
Certain cable subscribers will be able to get three free months of HBO or Showtime and internet-only customers well have access to Charter’s Spectrum TV Choice streaming services and a free month of Showtime.
In regards to their fraudulent advertising of their internet speeds, Charter will now have to prove its speeds by using “industry-accepted testing,” it will have to be more truthful about speed expectations when advertising, and it will have to provide hardware that reaches the advertised speeds, replacing any models that currently do not meet those speeds.
Another separate lawsuit with on-going negotiations, filed by the New York State Public Service Commission against Charter attempted to throw the service provider out of the state over their failure to issue service to rural areas.
For more information about the Charter-Spectrum lawsuit and settlement, send us a message.
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