FTC Proposed Order Imposes $8.5M Fine Against Frontier, Requires Some Fiber Deployment
A proposed order filed by the FTC and district attorneys of Los Angeles County and Riverside County, California, to the U.S. District Court for the Central District of California would prohibit Frontier from misrepresenting its internet speeds to customers, as…
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part of their complaint that the ISP misled its customers about its DSL speeds, said an FTC news release Thursday. FTC commissioners unanimously approved the order. Frontier would also be required to "substantiate its internet speed claims at a customer-by-customer level for new and complaining customers" and offer its DSL customers the option of changing or ending their service at no charge. The order would require Frontier to pay an $8.5 million fine and an additional $250,000 to affected consumers, said the proposed order, posted Thursday in case 2:21-cv-04155 (see 2203230046). The ISP would also be required to deploy fiber to 60,000 residential locations in California within four years at an estimated cost of $50 million-$60 million. “Frontier lied about its speeds and ripped off customers by charging high-speed prices for slow service,” said FTC Consumer Protection Bureau Director Samuel Levine: "Today’s proposed order requires Frontier to back up its high-speed claims. It also arms customers lured in by Frontier’s lies with free, easy options for dropping their slow service.” A Frontier spokesperson said the company "believe[s] the complaint included baseless allegations and disregarded important facts" and the settlement "stipulates that we admit no wrongdoing." The ISP "settled the lawsuit in good faith to put it behind us so we could focus on our business - that’s in the best interest of all our stakeholders, and especially our customers," she said: "Our commitment is to our customers and providing them with access to high-speed internet and improving our service in rural and underserved areas.”