New York’s attorney general is suing the second-largest cable operator in the US, claiming the company lied about internet speeds.
Eric Schneiderman filed the lawsuit (pdf) in Manhattan’s State Supreme Court on Wednesday, following a 16-month investigation. The attorney general argues that Charter and its subsidiary, Spectrum, have provided subpar services, with internet speeds slower than the company advertised.
Spectrum had been known as Time Warner Cable before Charter purchased it for about $60 billion, in a deal that was completed in May 2016. Schneiderman wants Charter to pay back its customers for broken promises on internet speeds for a period stretching from Jan. 1, 2012, to today.
With 2.5 million New Yorkers using Spectrum-Time Warner, Charter would have to reimburse customers up to $1 billion for each year since 2012, according to the lawsuit.
In today’s connected world, internet speeds matter greatly to consumers for countless everyday activities, from streaming Netflix shows and Spotify tunes to paying bills, doing homework, shopping for shoes and gabbing on social media.
The attorney general’s investigation found that Spectrum-Time Warner’s speeds were much slower than advertised, with executives ignoring engineers’ warnings that the promised speeds were impossible.
Customers paying $110 a month for 300 Mbps, were on average, only getting 85 Mbps, Schneiderman said at a press conference Wednesday. Those paying $70 a month for 100 Mbps were barely getting 50 Mbps. On average, Wi-Fi speeds were 80 percent slower than what customers were promised.
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SOURCE: Cnet, Alfred Ng