Attorney General Lori Swanson Sues Comcast/Xfinity for Charging More Than Promised, Charging for Unordered Products, and Not Delivering Promised Promotional Prepaid Visa Cards

Minnesota Attorney General Lori Swanson today filed a lawsuit against Comcast Corporation/Xfinity for charging customers more than it promised for cable television packages, charging for unordered equipment and services, and not delivering prepaid Visa cards promised in its promotions.

“It’s hard to shop for cable television if a company plays hide-the-ball on its true prices, and people shouldn’t have to watch their bills for things they didn’t buy,” said Attorney General Swanson.

Several years ago, facing low customer satisfaction ratings, Comcast began to also use the name “Xfinity.”

Charging More than Promised

For some customers, Comcast/Xfinity promises a set price for a certain period of time, either because the consumer has a minimum-term contract (i.e. is locked in for 12-24 months unless he or she pays an early termination penalty of up to $230 to cancel early) or was promised a promotional price (i.e. the price won’t change for a certain duration, like 12 months). Comcast/Xfinity charges a monthly base price to these customers for its cable television service and cable packages (i.e. cable packages with internet or phone service). Comcast/Xfinity quoted this base price to some consumers as their monthly price but then added an array of undisclosed fees that could add 30 percent or more to their monthly cable bill.

Some of these fees were invented by Comcast/Xfinity as a way to make the monthly price of their cable service look lower to consumers. These fees increased sharply in recent years. For example, Comcast/Xfinity charges a “Broadcast TV Fee” of $10 per month (or $120 per year) to cable customers. In 2015, this fee was $1.50 per month, an increase of over 550%. (¶18.) Comcast/Xfinity charges a “Regional Sports Fee” of $8 per month (or $96 per year) to many cable customers. This fee started as $1 per month in 2015, an increase of 700 percent. (¶19.) Comcast/Xfinity also charged equipment rental fees to some consumers who understood that the cost of the equipment was included in the monthly amount they were quoted. The lawsuit accuses the company of creating these “fee[s] on its own initiative and increasing them at its own whims.” (¶20.)

Comcast/Xfinity falsely told some consumers who questioned these extra fees that the fees were out of the company’s control. For example, it told one customer that “those fees are actually local fees and correspond to the FCC and we don’t manage those okay? Those aren’t up to Comcast.” (¶20.) It told another customer that “we have no control over the fees.” (¶ 20.) Comcast is not, however, required by any state or federal law to collect such fees, and does so simply to generate revenue.

Charging for Unordered Products

The lawsuit alleges that Comcast/Xfinity charged some people for services or equipment they did not order or declined to purchase, such as adding services, home security, service protection plans, or modems or other equipment to customers’ bills without authorization. (See ¶¶ 40-42).

Failing to Deliver Prepaid Visa Cards

To convince some consumers to sign up for its minimum-term contracts, Comcast/Xfinity promised some consumers prepaid Visa cards of up to $200 or more if they remained in the contract and up-to-date on their monthly payments for 90 days in good standing. The lawsuit alleges that Comcast/Xfinity did not deliver these gift cards to thousands of Minnesota customers. (¶45.)

The lawsuit was filed in Hennepin County District Court and seeks restitution, injunctive relief, and civil penalties.

Comcast entered into a settlement with the Federal Communications Commission for adding unordered merchandise/services to people’s accounts effective in 2017. In November, it entered into an assurance of discontinuance with the Massachusetts Attorney General for charging more than the promised price due to its imposition of added fees. In 2016, it was sued by the Washington Attorney General for adding service protection plans to people’s bills without their permission.

Attorney General Swanson encouraged consumers who are shopping for cable or internet service to ask for all details about the service they are purchasing in writing, including the total monthly price (with all taxes, fees, and surcharges); the length of time the price is valid; and any exceptions that might increase the amount they will be charged.

People may report complaints about Comcast/Xfinity to the Minnesota Attorney General’s Office by calling (651) 296-3353 or (800) 657-3787 or downloading a Complaint Form from the Attorney General’s Office website.