Comcast Corp. was ordered by the Federal Communications Commission to pay the largest civil penalty assessed from a cable provider by the FCC, to resolve an investigation into whether the company wrongfully charged customers for services and equipment they never asked for. Comcast will have to pay $2.3 million after the FCC looked into numerous consumer complaints alleging Comcast tacked on charges to their bills for unordered services and products, such as premium channels, set-top boxes or digital video recorders, according to a news release. The practice is known as “negative option billing” and is prohibited under the FCC’s rules and the Communications Act. Under the terms of Tuesday’s settlement Comcast will implement a five-year compliance plan and will offer, at no cost, the ability to block the addition of new services or equipment on their accounts. The settlement also requires Comcast to implement a detailed program for redressing disputed charges in a standardized and expedient fashion, and limits adverse action while a charge is being disputed, the FCC wrote in the release. Comcast shares are up nearly 13% in the year to date, outperforming the S&P 500 Index , which is up about 5%.
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