The FTC has approved a $69 million settlement with Frontier Communications over allegations they misrepresented internet service speeds to customers in Riverside and Los Angeles County.
The proposed settlement, which requires Frontier to pay nearly $9 million in costs and penalties and build $60 million worth of fiber optic internet infrastructure, now goes to the U.S. District Court for final approval.
According to Riverside County District Attorney Mike Hestrin, the negotiated settlement will prohibit Frontier from misrepresenting their internet service speeds, from “provisioning” or “capping” internet speeds below certain thresholds and bar them from selling internet packages without a reasonable belief that Frontier can indeed provide those speeds to the consumer’s home. Current Frontier customers who are paying for speeds they are not receiving will be notified by the company and given the option to keep or terminate the service.
Without admitting wrongdoing, Frontier agreed to pay $8,573,570 in costs and civil penalties; $250,000 that will be distributed to California consumers who were impact by the alleged conduct, and build up its fiber optic internet network to an additional 60,000 homes in California over the next four years, an investment estimated to cost between $50 to $60 million.
The investigation and prosecution of the case was conducted by Riverside and Los Angeles county’s district attorneys, in conjunction with the Federal Trade Commission.