CT AG Settles Frontier for $60M Over Hidden Fees and Deceptive Marketing

Summary

Connecticut Attorney General settled with Frontier Communications over deceptive marketing, hidden fees, and poor service. The $60 million settlement requires Frontier to invest $42.5 million in fiber upgrades for 40,000 households in distressed areas, end a $6.99 monthly surcharge, pay $1 million to the state, and provide $200,000 in consumer refunds. Frontier must also improve customer service, billing disclosures, and service quality guarantees over six years.

Remedy

Frontier must pay $1 million to Connecticut, provide $200,000 in refunds to affected consumers, invest $42.5 million to upgrade internet infrastructure in economically distressed communities, eliminate the hidden $6.99 monthly surcharge, and implement comprehensive reforms including new billing and advertising disclosures, speed guarantees, and improved cancellation and equipment return processes. The agreement is enforceable for six years with penalties for non-compliance.

Contract Impact

In-house legal teams should review all customer-facing service agreements for internet/telecom services, including residential service contracts, terms of service, and billing schedules. Focus on clauses governing fees and surcharges (to eliminate ambiguous or hidden charges), marketing and sales representations (to ensure accuracy and prevent deception), service quality and performance guarantees (to establish measurable standards), billing and disclosure provisions (for transparency), and cancellation/termination terms (to prevent improper charges post-cancellation). Revisions should include clear, itemized billing, removal of undisclosed fees, explicit service level commitments, and robust customer service protocols.

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