Electronics

One of the ways that telephone and cable companies try to make extra money is to pitch inside wiring plans to their customers. For about $5 a month, these plans typically promise to fix the cable or telephone wire in your home or apartment should it cause a problem with your service. Normally this would be the owner’s responsibility. Most consumer advocates say not to fall for the scare tactics and save your money because inside wiring rarely goes bad on its own.

Last week, the Washington state attorney general went one step further. He sued Comcast, a large purveyor of these inside wiring plans because of alleged deceptive tactics they used to sell these policies. The lawsuit accuses Comcast of misleading 500,000 Washington consumers and deceiving them into paying at least $73 million in subscription fees over the last five years for a near-worthless “protection plan” without clearly disclosing its significant limitations.

*MOUSE PRINT:

Here is how Comcast promoted its plan before the Washington AG began investigating. (Here is how the plan it is currently presented.)

It says in part:

“Comcast offers a comprehensive Service Protection Plan (SPP), eliminating any concerns about being charged additional fees for service calls related to inside wiring. … Hassle-free replacement and repair of defective customer inside wiring.”

When one checked the fine print terms and conditions of the Service Protection Plan as originally promoted, the introductory paragraph even reiterates the promise:

“Inside wiring covered under this plan is owned by the customer or a third party and is defined as wiring that begins at the “Demarcation Point,” which begins 12 inches outside the customer’s residence and extends to the individual phone jacks, cable and Internet outlets and extensions in the home.”

Digging deeper into the terms however, reveals the truth (emphasis added below).

*MOUSE PRINT:

Maybe 90% of the wiring inside a home is behind walls, and it is excluded! Thanks for nothing, Comcast.

Things get worse, according to the WA-AG’s complaint.

[While] Comcast claimed the SPP covers all service calls related to customer-owned equipment, it does not cover any actual repairs relating to customer equipment. It simply covers the technician visiting the customer’s house and declaring that the customer’s equipment is broken.

Comcast also marketed the SPP as covering service calls relating to Comcast equipment and wiring outside a customer’s house. However, these issues are already covered for free by Comcast’s Customer Guarantee promises.

The Washington AG is seeking $100+ million in his lawsuit.

For its part, Comcast issued the following statement:

“The Service Protection Plan has given those Washington consumers who chose to purchase it great value by completely covering over 99 percent of their repair calls. We worked with the Attorney General’s office to address every issue they raised, and we made several improvements based on their input.”

Incidentally, it is believed that Comcast marketed its service protection plan the very same way nationally… so you probably have not heard the end of this yet.