PHILADELPHIA _ Comcast will pay a $2.3 million fine to the federal government to settle charges it sold equipment and services to its cable and internet customers without their authorization, a practice known as "negative option billing."
The Federal Communications Commission on Tuesday said that Comcast, in addition to paying the fine _ the biggest civil fine ever levied against a cable operator _ has agreed to implement a "five-year compliance plan."
"It is a basic that a cable bill should include charges only for services and equipment ordered by the customer _ nothing more and nothing less," Travis LeBlanc, the FCC's enforcement bureau chief, said in a statement. "We expect all cable and phone companies to take responsibility for the accuracy of their bills and to ensure that their customers have authorized any charges."
Comcast said in a statement that "the issues should be fixed" and that it was "pleased to put this behind us."
The nation's largest cable operator, Comcast, which has faced intense public criticism over its customer service, has said it is improving its service by, among other measures, hiring thousands of additional call center representatives and technicians. It also has been restructuring its customer service operations throughout the company.
Customers will not benefit from the fine. The money will go to the federal government.
