Frontier Communications agreed to a $69 million settlement that includes building out its fiber optic network to 60,000 more California homes.
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.
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.Thanks for reading CBS NEWS.Please enter valid email address to continue
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