Comcast Agrees to $1 Million Settlement (1 Viewer)


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Apr 18, 2005
DeKalb County, AL
BOSTON - Comcast Cable Communications Holdings Inc. has agreed to pay $1 million in a settlement with Massachusetts that also requires the company to change its advertising and customer service practices.

The agreement is the culmination of a two-year investigation, spurred by hundreds of customer complaints filed with the state attorney general's office and the Better Business Bureau.

Many of the complaints were from AT&T Broadband, which was acquired by Comcast Corp. three years ago, and the company has worked to improve customer service, Comcast spokeswoman Shawn Feddeman said.

Attorney General Tom Reilly alleged that Philadelphia-based Comcast Cable, a division of Comcast Corp., advertised limited time offers of free or reduced rate digital cable packages without adequately disclosing the actual price of those services after the promotional period; hiding terms and conditions in difficult to read fine print; advertising free installation, but then charging consumers for installation; and charging a $5 monthly rental fee for a converter box and remote control, even for consumers who did not need them.

Consumers also complained of long waits to speak to customer service representatives, and the need to make repeated calls to address problems.

Comcast, the nation's largest cable television operator, denied that any of its practices were unlawful.

"We do not agree with the Attorney General's claims, however, we have already begun to make several changes" in customer service and advertising, Feddeman said.

Under the terms of the settlement, Comcast will pay $500,000 to support consumer aid programs, $250,000 to reimburse the costs of investigation, and $250,000 for in-kind services to Boys and Girls Clubs.

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