In an agreement that’s being called the largest-ever payout to consumers by an ISP in U.S. history, Charter Communications has agreed to a $174 million deal to settle a lawsuit accusing the company of throttling Netflix, The Hollywood Reporter’s THR, Esq. reports.
The settlement includes refunds and months of free HBO or Showtime for Charter’s New York customers, the story reports.
Charter “has agreed to refund $62.5 million to 700,000 customers and provide streaming services and premium channels at no charge to 2.2 million active Spectrum customers to settle a consumer fraud lawsuit,” THR reports.
THR adds: “On Tuesday, the office of the New York Attorney General announced the deal collectively valued at $174 million, which it says represents the largest-ever payout to consumers by an Internet service provider (ISP) in U.S. history.”
The report also notes: “The NY AG originally brought its complaint in February 2017. Charter’s Spectrum-Time Warner Cable service was alleged to have promised Internet speeds it knew it couldn’t deliver and to have misled subscribers by promising reliable access to Netflix, online content and online games. According to the NY AG, subscribers were guaranteed seamless access to their chosen Internet content while Charter engaged in hardball tactics with Netflix and other third-party content providers over interconnection payments.”