Does RCN Telecom Engage in Deceptive Marketing Practices?

RCN Telecom, along with its sister companies Grande Communications and Wave Broadband, offer broadband internet services across the United States. While RCN Telecom presents itself as “a better kind of company,” according to its website, and a potential alternative to some of the more mainstream internet providers, some customers claim that RCN Telecom engages in deceptive marketing practices, including excessive RCN fees.

What Is RCN Telecom?

The New Jersey–based telecommunications company, originally Residential Communications Network, was founded in 1993. RCN internet is offered to consumers in the Boston, New York, eastern Pennsylvania, Washington, D.C., Chicago, and Los Angeles areas. RCN Telecom operations, along with Grande Communications and Wave Broadband, were combined after acquisition by TPG Capital, and sold in Nov. 2020 to Stonepeak Infrastructure Partners for $8.1 billion.

RCN Reviews Complain about Excessive RCN Fees

A slew of complaints with the Better Business Bureau (BBB) express issues with RCN Telecom, many citing RCN fees as being excessive or otherwise overcharged.

One customer noted: “I am currently being billed $105 a month for just internet. The RCN website, as well as other potential providers I am not able to use, offer the same services I get now ranging between $38 and $45 per month and yet I am paying over twice that. This is not fair or right.”

“RCN has regularly increased my bill without notice,” another customer wrote. “Their price scaling and ‘No-Contract’ practices are predatory and ought not to be legal. Their advertised price is 39.99 a month, but I am required to pay double that for continued service.”

RCN Telecom Litigation

At least one lawsuit has been filed against RCN Telecom over its marketing practices and fees. Plaintiffs Katherine G. and Christian R. filed a class action complaint against RCN Telecom in July 2020, alleging the company snuck a bogus fee into their customers’ bills and labeling it as a tax, ultimately taking an excess of about $30 million from customers.

The lawsuit alleges this is a “bait-and-switch” scheme, given that the company promises to charge a flat monthly rate for its RCN internet service, but then “covertly increases” the price because of this “made up ‘Network Access and Maintenance Fee,’” the lawsuit alleges.

According to the lawsuit, the business started padding customers’ bills with a $1.97 charge per month in January 2018, and hiked the fee by $1.20 each year until it hit $4.37 in Jan. 2020.

“This scheme has enabled, and continues to enable, RCN to effectively increase its broadband internet rates without having to publicly announce those higher rates, and allows RCN to entice more customers by misrepresenting the costs customers would pay both in absolute terms and relative to other broadband internet providers in the industry,” the complaint alleges.

This fee was not disclosed nor included in the advertised price, the complaint says. Instead, it is intentionally buried in the monthly billing statements.

According to the complaint, “RCN falsely describes the fee as a tax on its bill and on its website in order to trick its customers into believing the fee is a pass-through government charge over which RCN has no control.”

The RCN Telecom lawsuit was filed on July 10, 2020 in the U.S. District Court for the District of New Jersey. Katherine (a Massachusetts resident) and Christian (a Pennsylvania resident) are seeking to represent a Class of current and former customers of RCN who have been charged this fee since Jan. 1, 2018. The plaintiffs paid a total of about $61.68 and $87.90 in those fees, respectively, according to the complaint. The complaint alleges violations of New Jersey’s Consumer Fraud Act and Truth-in-Consumer Contract, Warranty and Notice Act, as well as breach of the implied covenant of good faith and fair dealing.

Filing a RCN Telecom Lawsuit

If you have experienced RCN Telecom deceptive marketing, you may be able to file a lawsuit and pursue compensation. Filing a deceptive marketing lawsuit can help to alleviate the financial burden incurred, as well as hold companies responsible for their practices.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

The RCN Telecom Lawsuit is Case No. 3:20-cv-08609, in the U.S. District Court for the District of New Jersey.