A $100 million lawsuit against Comcast
With more customer complaints still reaching Washington State’s AG (attorney general) office of Comcast (CMCSA) charging unwanted fees, it’s important to examine how this matter might conclude for the company.
In August 2016, the AG office filed a $100 million lawsuit against Comcast, claiming that the company violated the state’s consumer protection regulations. According to Washington’s AG Bob Ferguson, Comcast’s service protection plan (or SPP) is misleading. Plus, the company is accused of continuing to charge customers who stated that they didn’t need the plan. In the lawsuit, Ferguson’s office also alleged improper service call fees as well as credit screening practices.
Washington consumers paid $73 million in five years
Washington’s AG office estimates that consumers in the state paid $73 million toward Comcast’s SPP between 2011 and 2015. The office is also seeking restitution for people affected by the alleged improper service call fees, which is why the office is seeking $100 million from Comcast.
For Comcast, losing the lawsuit brought up by Washington’s AG could lead to a burden greater than $100 million. For example, Washington’s success in the suit could inspire more lawsuits against Comcast in other states. Comcast’s SPP is available nationwide.
Comcast is building its wireless phone service, and in this space, it’s competing against powerful and disruptive forces such as AT&T (T), T-Mobile (TMUS), and Sprint (S). Comcast is also fighting off competition from AT&T and Charter Communications (CHTR) in the broadband market.
Comcast’s broadband business brought in $3.8 billion in 4Q17, an increase of 8.4% year-over-year.