PHOENIX — Cox Communications will have to pay out $13 million as part of a settlement with Arizona Attorney General Kris Mayes' office. The company was sued for failing to adequately disclose and explain new fees to customers.
Customers who signed up for television services between January 2017 and March 2021 entered into long-term contracts through "price lock" guarantees and other fixed-pricing deals. Although Cox reserved the right to raise bills during company-imposed fees during those years, Mayes' office said that the company failed to fully explain those fees.
"By disguising price increases as fees, Cox routinely raised the bills of customers who thought they had secured a locked-in price," Mayes' office said in a press release.
Those fees included the Broadcast Surcharge Fee and Regional Sports Surcharge, as well as its telephone-related Carrier Cost Recovery Fee. The last of those fees was "falsely implied" to be a tax or government fee as it was listed alongside other government fees and surcharges to customers.
As part of the settlement, Cox will pay out $10 million to the State of Arizona and $3,042,494 to be distributed to those current and former customers who signed up for television services between January 2017 and March 2021.
Payments will go out as account credits for eligible customers who still have active Cox accounts and electronic fund transfers for consumers who are no longer signed on with Cox.
All eligible Cox customers will be directly contacted by and paid by Cox, so no further action is needed from affected customers. If you want to see if you are eligible for the refund, visit cox.com/azrefund.
The company is also required to update and clarify all material terms and conditions at the time of sale, refrain from unilateral pricing increases on fixed-price customers, and continue offering plans without the aforementioned charges.
“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," Mayes said.
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