Cox class action alleges company increases monthly rate during fixed-rate term contracts

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Cox class action overview:

• Who: Cox customers sued the internet, TV and phone company.
• Why: The plaintiffs say Cox used a deceptive pricing scheme to covertly increase the monthly service plans for cable TV.
• Where: The class action lawsuit was filed in a California federal court.

Cox ran a deceptive pricing scheme where it covertly increased the monthly service rate for its cable TV service plans in the middle of promised fixed-rate term contracts, a new class action lawsuit alleges.

Plaintiffs Donald Christianson, Isabel Prado, Neil Moura and Daniel Polinsky filed the class action complaint against Cox Communications, Inc., and CoxCom, LLC Aug. 30 in a California federal court, alleging violations of state and federal consumer laws.

According to the Cox class action, the company enticed customers to enter into 24-month contracts for its cable TV service plans by promising a fixed monthly rate for two years. 

Cox class action lawsuit claims company disguised increases as surcharges 

Customers who entered into these 24-month contracts then gave up their ability to freely quit or downgrade their service for the 24 months without incurring a significant early termination fee, the plaintiffs allege. 

“Customers locked themselves into these 24-month contracts because Cox had represented to them that Cox was similarly locking itself into charging no more than the promised fixed rate during the contract term,” the lawsuit states.

However, Cox’s representations were false because it increased the monthly service rate mid-contract by increasing two disguised monthly service charges labeled on the bill as the “Broadcast Surcharge” and the “Regional Sports Surcharge,” the Cox class action claims.

“Cox failed to adequately disclose these service charges during the signup process, and Cox never disclosed the fact that Cox could, and would, use these service charges as a covert way to increase the monthly service rate mid-contract despite Cox’s promises to the contrary,” the plaintiffs allege. 

Since 2015, Cox has increased the Broadcast Surcharge and the Regional Sports Surcharge at least once a year—each time between $1.00 to $3.50 per Surcharge—on all of its cable TV customers regardless of whether they were in the middle of a purportedly fixed-price contractual period, the Cox class action alleges.

“Plaintiffs estimate that Cox has extracted over $70 million since 2015 from more than 1 million California and Nevada cable TV subscribers via mid-contract increases to the Broadcast Surcharge and the Regional Sports Surcharge,” the lawsuit says.

The plaintiffs are looking to represent a California class and a Nevada class of consumers who entered into a term contract for Cox cable TV service where Cox increased the amount of the “Broadcast Surcharge” and/or the “Regional Sports Surcharge” in the middle of the contract.

They are suing for violations of California consumer laws, and breach of contract and seeking certification of the class action, damages, fees, costs and a jury trial.

In 2020, Cox was hit with a class action lawsuit alleging that the provider overstates its internet speeds to deceive consumers and charge higher prices.

Were you affected by the alleged Cox cable TV service surcharges? Let us know your experience in the comments! 

The plaintiffs are represented by Paul Karl Lukacs of Hattis & Lukacs. 

The Cox class action lawsuit is Donald Christianson et al., v. Cox Communications, Inc., et al., Case No. 3:22-cv-01290-RSH-MSB, in the U.S. District Court for the Southern District of California. 

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