Frontier gets fined $8.5 million by the FTC for misrepresenting DSL internet speeds
Frontier gets fined $8.5 million by the FTC for misrepresenting DSL internet speeds. The Federal Trade Commission (FTC) of the United States is seeking an $8.5 million punishment against Frontier Communications in response to charges that the operator deceived consumers about the speeds delivered by its DSL internet service. The agency also wants to compel Frontier to install fiber in 60,000 California sites over the next four years.
The operator was accused of overcharging customers
The action comes in response to a lawsuit brought by the FTC against Frontier in May 2021, in which the operator was accused of overcharging customers and failing to deliver the internet speeds promised to users. To take effect, the proposed enforcement order, which was unanimously authorized by the commission, must be signed by a judge from the United States District Court for the Central District of California.
According to a Frontier spokeswoman, the FTC’s disclosure came after the company reached a settlement deal with the agency on March 11. However, the official underlined that the business thinks the FTC’s lawsuit contained “baseless charges and ignored critical facts,” and that the agreement requires Frontier to admit no wrongdoing. Frontier gets fined $8.5 million by the FTC for misrepresenting DSL internet speeds.
“We resolved the litigation in good faith in order to put it behind us so we could focus on our company – that’s in the best interests of all our stakeholders, particularly our consumers,” the spokesman added.
According to the FTC, the $8.5 million judgment includes civil fines and costs imposed by the District Attorneys’ offices of Los Angeles and Riverside Counties in California. It also includes $250,000 in compensation for subscribers in the state who have been affected by Frontier’s alleged activities.
Decrease the bills of California consumers who are ignorant
Frontier gets fined $8.5 million by the FTC for misrepresenting DSL internet speeds. However, the FTC’s decision would also impose a variety of remedial steps on Frontier. For example, it would compel the corporation to decrease the bills of California consumers who are ignorant that they have been receiving service that is slower than the stated speeds. It would also oblige Frontier to install fiber internet in 60,000 California households over the next four years, at a cost of $50 million to $60 million.
The operator is already in the midst of an expansive fiber build, aiming to cover 10 million locations by the end of 2025. Frontier executives have previously pointed to California as one of several high-priority states for upgrades, though it is unclear exactly how many locations it is planning to cover there.
Other items in the order would require Frontier to substantiate its speed claims at the customer level; prevent the operator from signing up new DSL customers in congested areas incapable of supporting sufficient speeds, and require it to notify existing customers who are receiving slower-than-advertised DSL speeds and permit them to change or cancel their service at no charge.