Comcast Busted For Signing People Up For Services They Didn't Want, Never Asked For

from the pay-more-for-nothing dept

Earlier this year Washington State sued Comcast for routinely ripping off its customers. The original complaint (pdf) argued that Comcast violated Washington state’s Consumer Protection Act (CPA) by misrepresenting its "Service Protection Plan," which lets users pay a $5 per month additional fee to cover "all" service calls. But the investigation found that Comcast not only over-stated what the plan covered, but routinely signed customers up for the plan who never asked for it, resulting in an additional $73 million in subscription fees over the last five years for what the State AG called a "near-worthless" plan.

The original complaint found that Comcast reps repeatedly sold the plan as being "comprehensive," covering all service calls, including those related to inside wiring, customer-owned equipment connected to Comcast services and "on-site education about products." But when customers subscribed to the plan called up thinking they'd then get a break from Comcast on service charges, the company would routinely bill customers anyway for all manner of services and repairs that should have been covered under the plan.

Amusingly, last week while Comcast was busy celebrating the vote to kill net neutrality, Washington Attorney General Bob Ferguson announced that his office would be amending and expanding its original complaint. According to investigators, the width and breadth of Comcast's protection plan scam went far deeper than investigators originally realized. After reviewing company interactions with subscribers, the AG found that "Comcast may have signed up more than half of all SPP subscribers without their consent," and in numerous instances charged customers for the SPP plan after telling them it was "free."

Ferguson's office claims they were "shocked" by the level of deception that occurred at Comcast:

"This new evidence makes clear that Comcast’s conduct is even more egregious than we first realized,” Ferguson said. “The extent of their deception is shocking, and I will hold them accountable for their treatment of Washington consumers."

If you've watched as Comcast gleans millions of dollars from unnecessary usage caps, extremely misleading fees (which it's also being sued over), or surcharges thanks to its monopoly over cable boxes, none of this should be remotely shocking. Being misleading is a rite of passage in the broadband sector, where captive customers, a lack of competition and blindly loyal state and federal regulators and lawmakers means accountability of any sort is frequently in short supply (though this is precisely the sort of stuff many falsely believe "the market" will magically take care of on its own accord).

And it's all about to get much worse. As we've well established, the Trump administration is gutting most meaningful FTC and FCC oversight of uncompetitive duopolies companies like Comcast. Worse, Comcast and Verizon have successfully lobbied the FCC to block any states that try to hold these ISPs accountable on the net neutrality, privacy, or errant billing fronts. All while the already flimsy competition Comcast faces in many of its markets weakens further thanks to telcos being unwilling to upgrade their networks. In other words, if you thought Comcast's behavior was bad in the past, you likely haven't seen anything yet.

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Filed Under: scams, service protection plan, washington

Companies: comcast