Florida Spectrum Subscribers File Class Action Lawsuit Against Charter for Charging Full Amount Amidst Disney Dispute
Florida Spectrum Subscribers File Class Action Lawsuit Against Charter for Charging Full Amount Amidst Disney Dispute
Lawyers for Charter Communications can add one more item to their to-do list. The company is facing a class-action lawsuit from customers in Florida, who claim that being charged the full amount for their Spectrum TV service despite the fact that Disney-owned cable networks like ESPN, Disney Channel, FX, and others are not currently available thanks to a carriage dispute between the two companies is illegal.
The suit alleges that Charter has violated Florida consumer protection laws and that its actions also constitute a breach of contract. Spectrum TV customers who call to register their displeasure regarding the dispute have received a $15 credit off their bill, but considering cable customers pay almost $10 to get ESPN alone, that $15 credit isn’t enough to make up for the number of channels Spectrum’s 14.7 million customers are now missing.
“Charter knew the debts they sought to collect were not legitimate because Defendant had actual knowledge they were not providing the contractually obligated services they were required to supply,” court filings from the plaintiffs state.
Charter sees the future of the cable industry quite plainly, and its president has made clear the company could exit the cable business altogether as a result of this carriage dispute. Spectrum has allegedly been asking Disney to allow its cable subscribers no-charge access to Disney streaming services in its next carriage deal, which is not a request that Disney — with its millions of dollars in streaming losses per quarter — is likely to greet with enthusiasm.
On the other hand, Disney has been asking for carriage fee increases at a time when there are fewer and fewer customers paying for Spectrum TV. That puts Spectrum in the position of having to raise prices on the users it still has and risk losing more of, or paying more money for the same product.
Charter has been steering affected customers to competitors like Fubo and YouTube TV while its dispute with Disney continues. Disney cable channels went dark for Spectrum customers right at the beginning of college football season, and amidst a thrilling U.S. Open tennis tournament that users must now seek from other sources. Charter and Disney continue to negotiate, but there’s a good chance Spectrum customers will miss the season opening “Monday Night Football” game on Monday, Sept. 11.
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