PHOENIX — Cox Communications is set to pay a settlement of $13 million after Arizona Attorney General Kris Mayes opened an investigation and lawsuit against the cable and internet provider.
The AG's Office states the company failed to disclose additional fees to customers when it deceived Arizonans who purchased television services to enter long-term contracts through promises of a "price lock guarantee" and other fixed-pricing "deals."
The settlement includes a $10 million payment to the State of Arizona and more than $3 million to current and former customers who signed up for television services between January 2017 and March 2021.
“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,” said Mayes. “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.”
According to the AG's Office, Cox reserved the ability to regularly raise the bills of price-locked customers through increases in company-imposed fees between January 2014 and March 2021. Cox allegedly failed to fully explain these fees, known as the Broadcast Surcharge Fee (BSF) and Regional Sports Surcharge (RSS), as well as its telephone-related Carrier Cost Recovery Fee (CCRF), to Arizonans.
By disguising price increases as fees, Cox routinely raised the bills of customers who thought they had secured a locked-in price, according to the lawsuit.
Current customers will receive their payment required by the settlement as a credit to their active account. Those who no longer have accounts will be issued electronic fund transfers.
Cox Communications will contact each customer eligible for the funds.
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