The anti-trust activities of cable television companies has been a concern to many consumers in California and nationwide who believe that they should have a choice about which company will provide their cable service. These days, that decision also increasingly includes using the same provider for Internet and landline telephone services due to multi-service packages offered. A consumer class-action claim may in some cases be a viable tool to stop or impede a monopolistic practice by a large cable provider.
The suit was filed in 2003 in federal court on behalf of consumers who were allegedly deprived of a choice. The allegation was that the defendant, Comcast, carved out a large geographical area and applied unfair business practices to make it extremely difficult for competitors to get into that area. In that way, the company could freely charge higher prices and effectively hold customers hostage to their prices.
It has taken about 11 years, but Comcast and consumer plaintiffs have finally settled for a payment of $50 million in services and money by Comcast. The settlement applies to consumers who were Comcast subscribers from Jan. 1, 2003 through Dec. 31, 2008. Negotiations reduced the class composition down to about 800,000 customers in five counties in Pennsylvania.
The services to be provided include temporary Internet upgrades, six free pay-per-view movies or two free months of The Movie Channel. A $15 cash benefit is also available for payment to former Comcast customers who used the services during the affected time frame. Comcast must advertise the settlement widely in the Philadelphia region.
The impact of the settlement on future anti-trust activities by cable companies is unclear. Unfortunately, the consumer plaintiffs suffered a reversal in 2013 when the U.S. Supreme Court made a ruling in favor of Comcast. This settlement apparently reflects limitations imposed by the high court ruling, applicable nationally including in California. It leaves unanswered questions about anti-trust practices by cable providers, but reaffirms the continuing utility of using the consumer class-action claim to protect the rights of consumers.
Source: philly.com, "Comcast to pay $50 million in class-action suit", Bob Fernandez, Dec. 13, 2014
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