CT AG Sues Cable Company Altice USA Over 'Network Enhancement Fees'

CONNECTICUT — Claiming the fees are "unlawful," Connecticut Attorney General William Tong on Monday filed a lawsuit against internet and cable television company Altice USA to stop the company from charging customers a "Network Enhancement Fees."

Tong claims the fees, which Altice USA has charged Connecticut Optimum Online customers since at least January 2019, has increased over time from $2.50 to $6 per month, and violates the state's Unfair Trade Practices Act, in part, by inadequately disclosing network speeds.

The fee is over and above the regular monthly Internet service charge, and Altice USA has made millions of dollars on them, Tong says, which he is seeking to recoup for customers.

"When customers pay for Internet service, they have a right to expect promised speeds and network reliability without being nickel and dimed with junk fees," Tong said in a statement. "Altice [USA] has extracted millions of dollars in hidden, escalating fees from Connecticut customers over and above the base rate simply to keep their network running. And even with all that extra revenue, they won't stand by their promised advertised speeds without a series of fine print, fast moving caveats. Our complaint seeks to hold Altice [USA] accountable for these unfair, anti-consumer practices, and to stop and claw back millions of dollars in these inappropriately collected fees."

Tong added that Altice USA claims the fees are necessary to "maintain and improve the network," but he argues that that is "a basic business function that customers already pay for in the base rate."

Patch reached out to Altice USA for comment, and received the following statement from company spokesperson Janet Meahan, claiming Tong's lawsuit is "without merit."

"Altice USA shares the state’s goal of ensuring Connecticut residents and businesses receive high-quality connectivity services and superior customer support," Meahhan said. "The company has invested hundreds of millions of dollars into its network, products, and support experiences across the state of Connecticut, which includes the deployment of our 100% Fiber Internet network to over two-thirds of our footprint in the state, delivering symmetrical speeds of up to 8 gig, the fastest residential internet service in our Connecticut service area. Altice USA provides customers with various offers at different speeds and price points, delivering reliable speeds and service with transparent pricing to customers throughout the state. We remain proud to serve our Connecticut customers and communities and believe that the Attorney General’s lawsuit is without merit."

Altice USA buries disclosures about the limits to their advertised speeds by listing them on the back of mailers in tiny print, in gray-on-gray backgrounds online and in print, and in small words that float away from the screen in their TV ads, the lawsuit claims. Additionally, the lawsuit claims the company sent out a large volume of Spanish advertisements with English-only disclosures.

Bryan T. Cafferelli, Commissioner of the state's Department of Consumer Protection, says "junk fees" have become a nuisance for customers.

"Just because junk fees are common practice, doesn’t mean we should settle for paying them, especially as companies find new ways to extract extra money from consumers," Cafferelli said. "This suit is just one of the many ways our state is working to combat the practice of junk fees, especially those that specifically target minority and non-English speaking communities."

Added state Senate Majority Leader Bob Duff, "Few phrases scream 'junk fee' quite like 'Network Enhancement Fees.' Scams like this fee take advantage of an internet environment with few options for consumers. I want to thank Attorney General Tong for standing up for Connecticut residents and taking legal action. Connecticut will continue to be at the forefront of protecting consumers, both at the General Assembly and in the courtroom."

Tong's office first launched its investigation into Altice USA Optimum in November 2022, following more than 500 consumer complaints regarding hidden fees, poor technical support, and slow internet speeds.

The lawsuit follows a settlement reached in August 2022 with Frontier Communications following review of over 1,400 consumer complaints regarding equipment returns, poor internet quality, unsatisfactory customer service, and excessive charges. The Frontier settlement, more than $60 million, expanded access to high-speed internet for Frontier customers in economically distressed communities, ended a hidden monthly $6.99 internet surcharge, and forced improvements in Frontier’s marketing and customer service.

Assistant Attorney General Rebecca Quinn and Deputy Associate Attorney General Michael Wertheimer, Chief of the Consumer Protection Section, assisted the Attorney General in this matter.