Comcast negative option billing lawsuit
❗This article is a stub. You can help by expanding it.
#appeals channel in either Zulip or Discord to request removal.An article may be flagged as a stub when it is missing major elements needed to make it useful to a reader. You can help by adding missing sections, verifiable sources, relevant company policies and communications, etc. to make the article more complete.
In 2016, the Federal Communications Commission (FCC) fined Comcast US $2.3 million for charging customers for services or equipment they did not request. This is a practice known as "negative option billing", similar to negative option marketing. Consumers reported having to spend a lot of time to remove the unauthorized charges from their bills and get refunds. The company imposed a five-year compliance plan to adopt processes and procedures designed to obtain affirmative informed consent from customers prior to charging them for any new services or equipment.[1]
Background
[edit | edit source]Comcast was founded in 1963 as American Cable Systems, and rebranded to Comcast Holdings in 1969. In 2001, the company rebranded again to Comcast. In 2010, Comcast began rebranding its triple play offerings to Xfinity.[2] The name-change was characterized by the media as an effort to avoid the negativity associated with the Comcast brand.[2][3][4] Time magazine called it one of the worst corporate rebrands of all time, asking "Will the name change work? Probably not, but at least it'll sound a bit edgier when you're put on hold ... with Xfinity." In 2014, Comcast was named "Worst Company in America" by The Consumerist.[5]
Comcast charging customers for services and equipment they never requested
[edit | edit source]Until 2016, Comcast charged its customers for services and equipment they had never ordered, a practice known as "negative option billing".[1] The FCC received many complaints from Comcast's customers, alleging that Comcast had charged them for unordered services or products, such as digital video recorders or premium channels.[1] Some customers reported having no knowledge of the unauthorized charges until they received unordered equipment in the mail. Others reported they had no idea of the unauthorized charges until they received notifications of the unrequested charges via email, or reviewed their bills.[1] In response to the complaints, the FCC began investigating Comcast.[1] The practice of negative option billing by cable companies is prohibited under the Communications Act and the FCC's rules.[1] The Communications act and the FCC's rules also prohibit a similar practice by phone carriers when unauthorized charges appear on customers' bills, known as "cramming".[1]
Comcast's response
[edit | edit source]Comcast acknowledged their previous poor customer service and billing concerns in a statement issued to Ars Technica:
We acknowledge that, in the past, our customer service should have been better and our bills clearer, and that customers have at times been unnecessarily frustrated or confused. That’s why we had already put in place many improvements to do better for our customers even before the FCC’s Enforcement Bureau started this investigation almost two years ago. The changes the Bureau asked us to make were in most cases changes we had already committed to make, and many were already well underway or in our work plan to implement in the near future.[6]
Lawsuit
[edit | edit source]On 11 October 2016, the FCC fined Comcast US $2.3 million. The FCC said this was "the largest civil penalty assessed from a cable operator by the FCC". The FCC also ruled that Comcast must implement a "five-year compliance plan",[1] saying that Comcast will adopt "processes and procedures designed to obtain affirmative informed consent from customers prior to charging them for any new services or equipment", and that Comcast will send send customers an order confirmation describing the ordered products "clearly and conspicuously":
Specifically, Comcast will adopt processes and procedures designed to obtain affirmative informed consent from customers prior to charging them for any new services or equipment. Comcast will also send customers an order confirmation separate from any other bill, clearly and conspicuously describing newly added products and their associated charges.[1]
The FCC also said Comcast must offer the ability to block the addition of new services or equipment to their account, at no cost:
Further, Comcast will offer to customers, at no cost, the ability to block the addition of new services or equipment to their accounts.
In addition, the FCC said that Comcast must "implement a detailed program for redressing disputed charges in a standardized and expedient fashion", and that they are limited in adverse action, such as referring an account to collections or suspending a customer's service while a disputed charge is being investigated:
In addition, the settlement requires Comcast to implement a detailed program for redressing disputed charges in a standardized and expedient fashion, and limits adverse action (such as referring an account to collections or suspending service) while a disputed charge is being investigated.
Consumer response
[edit | edit source]While some response to the FCC's fine was positive, with one user in an Ars Technica comments section saying "I don't think much needs to be said here besides: 'Good.'", and another saying: "That's what you get, Comcast.",[6] most people thought the fine was not big enough, with one user saying "Slap on the nail of someone's pinky finger? I miss the old fashioned slap on the wrists... 🙁", and another saying "So, in other words, they got away with it."[6]
See also
[edit | edit source]References
[edit | edit source]- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 "Comcast To Pay $2.3M Fine To Resolve Billing Complaints". Federal Communications Commission. 2016-10-11. Archived from the original on 20 Apr 2025. Retrieved 2025-08-20.
- ↑ 2.0 2.1 Adegoke, Yinka (2010-02-09). Caney, Derek (ed.). "Comcast seeks reputation change with Xfinity brand". Reuters. Archived from the original on 2010-08-16. Retrieved 2026-08-20.
- ↑ Bode, Karl (2010-02-08). "Comcast Xfinity Rebranding Largely Laughed At - Analysts, customers aren't particularly impressed..." DSLReports. Archived from the original on 2023-10-11. Retrieved 2026-08-20.
- ↑ Gregory, Sean (2010-02-07). "Comcast's New Name: Rated X?". Time. Archived from the original on 2010-02-11. Retrieved 2026-08-21.
- ↑ "Congratulations To Comcast, Your 2014 Worst Company In America! – Consumerist". Consumerist. 8 Apr 2024. Archived from the original on 1 Dec 2017. Retrieved 20 August 2026.
- ↑ 6.0 6.1 6.2 Machkovech, Sam (2016-10-11). "Comcast fined $2.3 million by FCC for "negative option billing" practices". Ars Technica. Archived from the original on 2026-08-22. Retrieved 2026-08-22.