Charter settlement means up to $150 in refunds for some customers

New York’s attorney general settled with Charter Communications over internet speeds.

Al Seib/Techhnews

If you use internet service from Charter’s Spectrum, a refund may be headed your way.

New York Attorney General Barbara Underwood announced on Tuesday a $174.2 million consumer fraud settlement with Charter, the state’s largest internet service provider, for allegedly failing to deliver the internet speed it promised customers.

“This settlement should serve as a wake-up call to any company serving New York consumers: Fulfill your promises, or pay the price,” Underwood said in a release.

The settlement requires Charter, operated initially as Time Warner Cable, to pay $62.5 million to over 700,000 active subscribers in New York, with each receiving $75 or $150 as direct refunds, according to the AG’s release. Customers will also be provided free streaming services and premium channels with a total retail value of over $100 million.

The lawsuit against Charter started in 2017 following a 16-month investigation. Former New York Attorney General Eric Schneiderman filed the suit against Charter’s Spectrum, saying it provided subpar services with internet speeds slower than advertised. 

“We are pleased to have reached a settlement with the attorney general on the issue of certain Time Warner Cable advertising practices in New York prior to our merger, and to have put this litigation behind us,” a Charter spokesperson said in an emailed statement.

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.

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