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LEGAL NEWSLINE

Friday, July 5, 2024

Attorney general files lawsuit against Altice over unlawful network enhancement fee

State AG
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Attorney General William Tong | Twitter Website

Attorney General William Tong has initiated a lawsuit against Altice/Optimum Online, seeking to cease and recoup millions of dollars in unlawfully charged “Network Enhancement Fees.” The complaint also aims to hold the company accountable for undisclosed limitations regarding advertised speeds.

The lawsuit alleges three categories of violations of the Connecticut Unfair Trade Practices Act, including an improper fee, inadequate speed disclosures, and English-language disclosures on Spanish marketing materials. The complaint seeks restitution for consumers as well as penalties for the state.

Altice has been charging Connecticut consumers a monthly “Network Enhancement Fee” since at least January 2019. This fee has increased over time from $2.50 per month to $6.00 per month with limited disclosure. Altice has collected millions of dollars from Connecticut consumers through this fee, which is over and above the regular monthly Internet service charge. For new customers, the fee was not disclosed up front and only appeared in the shopping cart after a consumer selected an Internet service.

The complaint also alleges that Altice hides disclosures about their advertised speeds' limitations by listing them on the back of mailers in tiny print or using gray-on-gray backgrounds online and in print.

Furthermore, Altice sent out numerous Spanish advertisements with English-only disclosures.

“When customers pay for Internet service, they have a right to expect promised speeds and network reliability without being nickel and dimed with junk fees,” said Attorney General Tong. He added that even with all that extra revenue, Altice won't stand by their promised advertised speeds without a series of fine print, fast-moving caveats.

Department of Consumer Protection Commissioner Bryan T. Cafferelli stated that just because junk fees are common practice doesn't mean we should settle for paying them.

Senate Majority Leader Bob Duff thanked Attorney General Tong for standing up for Connecticut residents and taking legal action against such practices.

Senator Norm Needleman supported Attorney General Tong’s work on this issue, stating that these fees are indicative of deceptive, anti-consumer practices.

The Office of the Attorney General first launched its investigation into Altice Optimum in November 2022, following more than 500 consumer complaints regarding hidden fees, poor technical support, and slow internet speeds.

This complaint follows a settlement reached in August 2022 with Frontier Communications following review of over 1,400 consumer complaints regarding equipment returns, poor internet quality, unsatisfactory customer service, and excessive charges.

Assistant Attorney General Rebecca Quinn and Deputy Associate Attorney General Michael Wertheimer assisted the Attorney General in this matter.

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