Cox Communications to pay $13M to settle Arizona lawsuit over added fees


Cox Communications Inc. has reached a $13 million settlement with the state of Arizona in a state lawsuit contending that the company used inadequately disclosed fees to disguise price increases for customers who thought their prices were fixed.The state’s lawsuit, filed in 2023 by Arizona Attorney General Kris Mayes, alleged that Cox used price-lock guarantees and other fixed-pricing offers to get television service customers into long-term contracts. It said that between January 2014 and March 2021, Cox regularly increased three different fees — the broadcast surcharge fee, the regional sports surcharge and the carrier cost recovery fee — without sufficient explanation.Affected customers who signed up for television services between January 2017 and March 2021 will receive compensation out of more than $3.042 million of the settlement cost. The remaining $10 million will go to the state. Cox said that money will go to the attorney general’s statutory fund.“As Attorney General and a former utilities regulator, I have always fought to ensure that consumers are provided clear and accurate information about the services they receive,” Mayes said in a statement. “This substantial settlement holds Cox accountable for years of deceptive charges and false promises. We’re sending a clear message that businesses must fairly and honestly disclose all fees and honor the guarantees that they make to Arizonans.”In connection with telephone customers, the lawsuit also alleged that by listing the fee alongside government fees, taxes and sur …

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