The Federal Trade Commission (FTC) has acted to stop internet service provider, Frontier Communications, from lying to consumers and charging them high-speed prices for slow internet service.
Under a proposed order with the FTC and two California law enforcement agencies, Frontier will be prohibited from misleading consumers about its slow internet service and required to support its speed claims.
Frontier must also provide current customers with free and easy cancellations when it fails to deliver the promised speeds, according to FTC.
"Frontier lied about its speeds and ripped off customers by charging high-speed prices for slow service," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection in a statement posted in the FTC website. "Today's proposed order requires Frontier to back up its high-speed claims. It also arms customers lured in by Frontier's lies with free, easy options for dropping their slow service."
Frontier Failed To Deliver What It Advertised
Frontier advertises and sells digital subscriber line (DSL) internet services in several plans, based on download speed. In May 2021, the internet company was sued by FTC when it failed to deliver the promised internet speeds.
According to CBS News, thousands of consumers have complained to Frontier and government agencies since at least January 2015 about their broadband service being slower than advertised. Frontier provides DSL service to about 1.3 million people in 25 states, many in rural areas.
In the complaint filed by FTC, the agency alleged that Frontier failed to provide many consumers with the maximum speeds they were promised, and the speeds they actually received often fell far short of what was promised in the plans they purchased.
FTC has moved to take action following the many complaints of the customers.
"My office will not stand by while businesses take advantage of consumers by failing to provide them with the services they have purchased," said Los Angeles County District Attorney George Gascón in a statement posted on the FTC website.
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What Are Included in the FTC's Proposed Order?
With the FTC's action, the internet company must now uphold its claims for new and existing customers and notify them when it is unable to do so.
The proposed order also required Frontier to ensure it can provide the internet service speeds it advertises before signing up, upgrading, or billing new customers
The internet company must also notify people getting slower-than-advertised internet speeds and let them change or cancel their service at no charge, as per a CBS News report.
Under the FTC's decision, Frontier is prohibited from signing up new customers for its DSL internet service in areas where the high number of users sharing the same networking equipment causes congestion resulting in slower internet service, the FTC said.
Frontier will be required to pay $8.5 million in civil penalties and costs to the Los Angeles County and Riverside County district attorneys' offices on behalf of California consumers.
In addition, it will have to pay $250,000 to be distributed to its California customers harmed by the company's practices, the FTC stated.
According to FTC, Frontier was ordered to install fiber-optic internet service, which is faster than DSL, in 60,000 California homes over four years, at an estimated cost of $50 million to $60 million.
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