One of the leading telecom industries in the nation, Charter Communications, recently responded to a lawsuit filed against them over billing surcharges, including the fee for broadcast retransmission. Charter claimed that the prime focus of the billing methodology was to give their subscribers an insight on what they are paying for. In a recent statement, Charter wrote, “Charter is committed to offering its customers superior products at a better value, including the fastest base broadband speed and the most HD video.”
“Our customer friendly approach includes simplified pricing and packaging with no data caps, no modem fee, no early termination fee and no separate USF fee. We provide simple-to-understand bills and want our customers to understand what they are paying for, including the skyrocketing cost of broadcast channels,” they added.
Charter Communications was sued for breach of contract and for false advertising in a San Diego State Court. The complaint charged against the Telco claimed that they are inappropriately charging fees from their subscribers, such as fee for broadcast and sports TV surcharges. However, these fees were not included in the advertised price set by the company.
The suit mentioned that Charter “and its wholly owned subsidiary Time Warner Cable, Inc. (TWC) is engaging in a massive illegal scheme of falsely advertising and promising its cable television service plans for much lower prices than it actually charges.” This lawsuit is almost similar to the class action complaint, which was filed against Comcast Corporation last month.
“These deceptive surcharges earn Charter hundreds of millions of dollars each year, accounting for approximately 20 percent of Charter’s total annual profits. The surcharges currently stand at $8.75 per month for California subscribers like plaintiff Michael Song, having increased over 400 percent since TWC first introduced the broadcast TV surcharge in March 2014,” the lawsuit added.
In addition to that, the complaint filed against the company also claimed that the company is making bogus charges, which seems like they are required by the law. Some of the items included on the list are “State Cost Recovery Fee”, “PUC Recovery Fee”, and the “Regulatory Recovery Fee”. The suit added, “TWC imposes surcharges to recover costs of complying with its governmental obligations.” Charter officials have said that they are looking to resolve the issue as soon as possible.