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Cox Communications was hit with a class action lawsuit alleging the company gouges customers by forcing them to rent expensive cable boxes to access premium channels they already paid for.
Lead plaintiff April Bagwell alleges in her class action lawsuit filed in Nebraska, that the cable company unfairly requires customers who subscribe to premium channels to pay rental fees for set-top boxes to access those channels, even though these customers already pay more.
The plaintiff also claims that the rental fees far exceed the cost Cox pays for the set-top boxes.
According to the complaint, the rental fee “quickly adds up to more than the cost Cox paid to purchase set-top boxes in the first place, leaving Cox with months of pure profit once the purchase price of the set-top box is fully paid off and consumers with a substantial loss.”
The class action complaint further alleges that Cox’s rental fees “have substantial adverse effects upon interstate commerce and has caused and continues to cause direct economic injury to members of the class.”
Cable companies often encrypt premium content; scrambling the program data so regular non-premium customers do not have access to the premium channels, notes the plaintiff in her complaint.
Cox does this with the set-top box that acts as a security device, unscrambling the premium channels.
According to the class action lawsuit, premium subscribers must rent the set-top box to unscramble the content from Cox.
This is not fair to consumers, argues the plaintiff, because premium customers pay extra for access to the additional channels and must rent the set-top boxes directly from Cox to access the programing they already paid for.
“There is no valid reason technologically or otherwise to bundle the device that performs this security function with the digital conversion and two-way communication functions of set-top boxes or to stifle innovation into new technologies by a competitive market,” argues the plaintiff in her complaint.
The plaintiff further alleges in her class action lawsuit that Cox is violating a mandate from the Federal Communications Commission that prohibits the bundling of services using set-top boxes.
The plaintiff argues that Cox is taking advantage of security concerns to illegally bundle set-top boxes with other services; and action that chills competition in the set-top box market.
Cox’s cable box practices have been the target of a number of class action lawsuits. The cable company faced a consolidated class action lawsuit in Oklahoma; however, in 2011 the proposed nationwide Class was rejected by the court.
Bagwell is represented by Steven M. Delaney of Reagan Melton & Delaney LLP, Todd M. Schneider and Jason Kim of Schneider Wallace Cottrell Konecky Wotkyns LLP, Allan Kanner and Cynthia St. Amant of Kanner & Whiteley LLC, and Joe R. Whatley Jr. of WhatleyKallas LLC.
The Cox Communications Set-Top Box Class Action Lawsuit is Bagwell v. Cox Communications Inc., Case No. 8:16-cv-00406, in the U.S. District Court for the District of Nebraska.
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46 thoughts onCox Class Action: Customers Unfairly Forced to Rent Set-Top Boxes
PLUS, the new box doesn’t let you record any programs off of it. Yeah, I know, we are behind the times and don’t have DVR (which costs MORE $ through Cox). I have a DVD recorder which I have used for years; now, because of the configuration on the mini box, it won’t let me record. I can still play videos, but not record. I used to give Cox a fairly good recommendation, but I AM SO MAD AT THEM RIGHT NOW… IF I didn’t have to have them, I wouldn’t.
Donna, you don’t. I was with Cox since 1991. My bill kept escalating but I could always negotiate a better deal. My bill was up to $93 and going up this past Jul to $124. I bought Roku3, a Roku TV and Mohu Leaf antenna for local channels. I signed up with Sony PlayStation Vue channel which gets all my favorite cabel channels. I kept Cox internet. My bill is now $63.00. I love that there are no surprises and its same every month. I’m not paying for all the filler channels I never watch. I don’t miss Cox or their “premium” channels. When I called to cancel, I was never even asked why. That’s what being a loyal 25 year customer gets you!
Nothing but a higher bill.
I gave up the boxes, reduce the computer speed and my phone has basic service. I will go with another company for my computer, I will use it for the news, watch certain programs, play dvd’s, movies, art shows, and read more books or listen to audio books while doing chore, etc etc etc
Now my bill is down to less than half and I survived. Cox is not getting away with all those charges any more.
Will Missouri be apart of this lawsuit? I have u verse with at&t. The box rental keep increasing
Too much.
I have had nightmare experiences with both Verizon Fios & Time Warner Cable in New York. I don’t understand why they are not regulated and this price gouging is allowed to continue. The consumer is being victimized and there is no one to turn to. How sad…..
I moved to Virginia after being a cox customer in CT for 30 years. My monthly bill in CT was $178/month
I was given a bundle service in VA for $180/month with a one year contract. After one year my monthly bill went up to $220/month with no reason for the increase. You just bhave to accept whatever fee cox bills you.
Cox is not the only one who does this. Time Warner (Comcast) also does this.
We have Verizon and they do the same thing. The internet router and equipment to operate telephones are free of rent charges but we are FORCED to pay rent on the boxes for the TV. No option to buy. We had a TV set top box that quit working. Verizon told us we had to pay for it and then were hit with rental charges for the new device. Legalized theft.
there not the only ones doing that comcast infinity is doing same thing in memphis tn
Cox has been known to price gouge and every time you try to make a change they penalize you with higher prices.
Will Illinois be a part of this lawsuit?