New Jersey Investigates Comcast for 'HD Fee' Price Jacking The New Jersey Board of Public Utilities is investigating Comcast's practice of adding a $10 “High Definition Technology Fee” for subscribers to the company’s “Limited Basic” service. As the Consumerist notes, the fee allows Comcast to advertise TV service for $21.90 a month across much of New Jersey, when the actual cost of service once all fees are added will often be twice that. The fee is added despite less than half of the channels in the package being in HD, and most being available free over the air in HD.

Comcast appears to be in trouble in New Jersey in part because it didn't bother notifying regulators of the fee before adding it as required by local regulations. Comcast is refunding the money of customers that call into complain. Of course regular readers know that "HD fees" are just one small part of a broad, over-arching industry practice of jacking up TV and broadband bills post sale with a variety of below-the line fees. Such fees consistently let companies advertise one rate -- then hit consumers with a dramatically higher bill down the road. Many of these fees are intentionally made to sound like government mandated fees but are pure profit for the company (like the "regulatory recovery" fee). Others are simply the cost of doing business broken out from the overall price and buried below the line to, again, advertise an artificially lower price (like the "Broadcast TV fee"). The "HD fee" is just one of many, and most consumers can expect a "UHD" fee as 4K/UHD adoption soars. Traditionally, regulators have done little to nothing to protect consumers from the practice, which is effectively false advertising -- but so common it apparently doesn't warrant regulatory inquiry. In this case, Comcast says it's cooperating with New Jersey regulators as the investigation continues. Traditionally, regulators have done little to nothing to protect consumers from the practice, which is effectively false advertising -- but so common it apparently doesn't warrant regulatory inquiry. In this case, Comcast says it's cooperating with New Jersey regulators as the investigation continues.







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Most recommended from 53 comments



telcodad

MVM

join:2011-09-16

Lincroft, NJ 26 recommendations telcodad MVM An "HD Technology Fee" these days is just an unnecessary cash grab! quote: Of course regular readers know that "HD fees" are just one small part of a broad, over-arching industry practice of jacking up TV and broadband bills post sale with a variety of below-the line fees.

Today, in 2016, is there really any good reason for a Pay-TV company to be charging extra for "HD" anymore anyway?



I guess I'm lucky that Comcast doesn't charge me a "Color Technology Fee" also!



Even the telephone companies have stopped charging for "TouchTone" service a long time ago.



It's about time that Pay-TV companies do likewise for "HD." (They can always replace it with a new "4K/UHD" fee now.) Today, in 2016, is there really any good reason for a Pay-TV company to be charging extra for "HD" anymore anyway?I guess I'm lucky that Comcast doesn't charge me a "Color Technology Fee" also!Even the telephone companies have stopped charging for "TouchTone" service a long time ago.It's about time that Pay-TV companies do likewise for "HD." (They can always replace it with a new "4K/UHD" fee now.) b10010011

Whats a Posting tag?

join:2004-09-07

Bellingham, WA 17 recommendations b10010011 Member Cable companies should not even be able to charge for OTA channels And any channel that is broadcast OTA should not be able to charge cable companies to carry them.

tshirt

Premium Member

join:2004-07-11

Snohomish, WA 16 recommendations tshirt Premium Member Of all the things the FCC should do... ...THIS is it (even if they have to end their turf war with the FTC (the proper agency) to do so)

Nationwide the price you see (locally)advertised is the price you pay plus tax and any REAL GOV'T fees that vary by area, and any location/address specific quote shows all that including the bottom line. for TV, HSI phone or any other service.

National ads must disclose an honest range of applicable fees, and a realistic bottom line/normal price for service AFTER the promo.



This is one of the few things that don't seem to follow "Truth in Advertising" standards/laws because the FCC wants total control, but has no mechanism/experience/personal to enforce it. axiomatic

join:2006-08-23

Tomball, TX 13 recommendations axiomatic Member Come on... The "HD Fee" is simple to explain. It's a labor charge. It takes a team of 8 strong men to wrangle that HD signal in to an SD width stream. What, you think it's just a fatter stream on the same underused wire? Au contraire! These men went without lunch or dinner to bring you your HD picture! And all 8 men had to carpool in the same Cooper MINI, IN THE SNOW! UPHILL! Have a heart! The fee is warranted! See! courty3210

join:2004-03-29

Wilmington, DE 6 recommendations courty3210 Member finally... I live in a DE and hope comcast gets nailed for this. I used to have $15 basic cable with clear QAM. Beautiful HD signal, but then they forced us to digital and started charging for $10 HD boxes, and then hit me with the HD FEE of $10. By the time we were done, i went from two tv's w/HD for $15/month to $40/month. So I bought a winegard antenna and went OTA. I highly recommend cutting the cord, network TV, hulu, and netflix make a great combination.

IowaCowboy

Supermarket Hero

Premium Member

join:2010-10-16

Springfield, MA 4 recommendations IowaCowboy Premium Member Broadcast TV fee I wish the Mass DPU would investigate the broadcast TV fee on the limited basic tier. Limited basic is $5 but they charge $5 for the broadcast TV fee. So there goes using basic cable to get the better rate on Internet.

maartena

Elmo

Premium Member

join:2002-05-10

Orange, CA 1 edit 4 recommendations maartena Premium Member Come get cable for $19.99!!*

*Fees not included:

- HD Technology fee: $10.

- Tuner box fee: $10.

- If you want said tuner box to record things: $10 for DVR service.

- "Sports Surcharge": $4

- "Broadcast Surcharge": $4

- "Random fees and taxes that other products just include in the cost of doing business but we specifically want to point out: $5 combined.





And.... that is why you "$19.99" cable deal ends up netting you a monthly bill of $62. Provided you only have 1 TV.