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New York Attorney General Letitia James announced that Spectrum has begun to issue $62.5 million in credits to customers after the company failed to deliver “the reliable and fast Internet service it had promised.”
The settlement came following a lawsuit that was filed in 2017 alleging that Charter Communications and its predecessor, Time Warner Cable, “denied customers the reliable and fast internet service it had promised.”
The record $174.2 million consumer fraud settlement included $62.5 million in direct refunds to customers, which “is believed to represent the largest-ever payout to consumers by an internet service provider in U.S. history.”
More than 700,000 Spectrum customers are expected to receive between $75 and $150 as part of the refund.
James announced on Tuesday that Spectrum has started issuing the refunds to qualified subscribers. Subscribers do not have to fill out any paperwork to obtain the credit, but must contact Spectrum to receive the streaming services.
The company also agreed to provide 2.2 million of its active subscribers in New York more than $110 million worth of streaming services and premium channels such as HBO and Showtime at no charge, the AG noted. All other Charter Internet subscribers will also receive a free month of Charter’s Spectrum TV Choice streaming service and a free month of Showtime.
Aside from the $174 million payout, Charter is also required to implement a series of precedent-setting marketing and business reforms, establishing a new model for the broadband industry.
“Today, New Yorkers will start to receive the tens of millions of dollars and additional services owed to them due to the company’s failure to provide quality services to its customers,” James said. “In issuing the largest-ever consumer payout by an internet service provider, my office is proud to set a higher standard for the way that internet providers accurately market services.”
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