Comcast Under Fire For Using Sneaky Fees to Jack up Rates Comcast just got done imposing all manner of rate hikes on its customers as the new year arrived. Modem rental fees, streaming video, traditional cable, late fees, and much more saw yet another increase in the new year. Included in those increases were bumps to the company's rotating array of misleading fees, ranging from its regional sports fee (now $6.75 per month) as well as the company's "broadcast TV fee," which will now cost users $7.75 per month. Comcast is facing several lawsuits over the fees, which help it advertise one price, then charge a higher rate.

Industry analyst Phillip Swann notes that these fees have jumped 241% in just three years as Comcast takes full advantage of lazy regulators and inattentive consumers. "Combined, Comcast subscribers in most markets pay $14.50 a month for the two fees which the cable operator, and other pay TV services, say are designed to offset the rising costs of licensing the rights to carry local channels and regional sports networks," notes the analyst. "While those costs have risen, no one is claiming they have risen 241 percent in three years, or anywhere close to that amount," he adds. Comcast's "Broadcast TV fee" has proven particularly contentious, since the fee simply involves taking a part of Comcast's overall cost of doing business (programming costs), then buries it below the line. This falsely lets Comcast advertise a lower rate than it actually charges, a tactic regulators from both parties have made clear time and time again that they couldn't care less about. Comcast has tried to claim its application of this fee is just its way of being "transparent," despite the fact users often don't know what they'll actually pay until after the bill arrives. By hiding price hikes in fees, Comcast can attempt to downplay soaring subscriber bills by insisting the advertised rate remains the same (or close). But contrary to what Comcast believes, many consumers are paying attention, and such fees are just one of several reasons Comcast and other incumbent cable providers continue to lose traditional TV subscribers to streaming video alternatives. By hiding price hikes in fees, Comcast can attempt to downplay soaring subscriber bills by insisting the advertised rate remains the same (or close). But contrary to what Comcast believes, many consumerspaying attention, and such fees are just one of several reasons Comcast and other incumbent cable providers continue to lose traditional TV subscribers to streaming video alternatives.







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Most recommended from 34 comments

Valen

join:2004-12-19

Canonsburg, PA 16 recommendations Valen Member Amazing... Like no one saw this before? Comcast needs to be broken up, but will not happen because they have bought the lawmakers!

Economist

The economy, stupid

Premium Member

join:2015-07-10

united state ·AT&T FTTP

14 recommendations Economist Premium Member Below the line fees should be criminal... ...when they are unavoidable fees, particularly if the fee is a standard amount.



If you advertise a product as $49.99 when it is impossible in any market to get it for that, that is ad fraud and should be prosecuted as such. Meaning if you have a tier that includes broadcast that you cannot opt out of or sports that you cannot opt out of, it is fraud and should be gone after if you force a sub baited by $49.99 to pay $50 or $55 because of these "surcharges" that are unavoidable as part of the $49.99 ad leader.



And according to the FTC, the little * and fine print about junk fees do not get you out of having committed ad fraud as the giant bold type is designed to mislead consumers and "affect consumers' behavior or decisions about the product or service". jamaicaplain

join:2014-11-07

Jamaica Plain, MA 14 recommendations jamaicaplain Member Fees also raise "guaranteed" prices Not only do these fees let the company advertise lower prices, they also let them raise prices when the customer has a contract with a "fixed" price over the first, second, and possibly third year. The company then argues that the "guaranteed" price does not change, only the fees change, and they were never guaranteed. I find this even more opaque.

Anon42209

@rr.com 13 recommendations Anon42209 Anon Triple Play Offer Pretty soon, they'll be able to offer their triple play package for $9.95 and have $150 worth of added, hidden fees. briansgs2

join:2013-04-25 11 recommendations briansgs2 Member If they had competition! Only monopolies get away with this stuff. If they had competition this just wouldn't happen, and if it did they would have no customers as the market would regulate itself.

wxboss

This is like Deja vu all over again.

Premium Member

join:2005-01-30

Fort Lauderdale, FL 7 recommendations wxboss Premium Member Of course... Took my Xfinity router box back after purchasing my own equipment in the hopes of saving $11 a month. Found out my new bill will be only $6 lower. When I asked why, he said that new fees went into effect in October, but my bill hasn't changed in over 2 years.



I guess your bill only goes up when they have fewer ways to 'legitimately' take your money.