Charter users who didn’t get promised speeds will get $75 or $150 refunds

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Charter has agreed to pay $62.5 million in refunds to more than 700,000 customers to settle a lawsuit filed by the New York state attorney general's office, which alleged that Charter defrauded customers by promising Internet speeds that it knew it could not deliver.

The 700,000 New York-based customers will receive between $75 and $150 each, NY AG Barbara Underwood announced today. Charter will also provide access to "streaming services and premium channels, with a retail value of over $100 million, at no charge for approximately 2.2 million active subscribers." The settlement's total value is $174.2 million, the AG's office said.

"The $62.5 million in direct refunds to consumers alone are believed to represent the largest-ever payout to consumers by an Internet service provider (ISP) in US history," the AG's announcement said. "The landmark agreement settles a consumer fraud action alleging that the state's largest ISP, which operated initially as Time Warner Cable (TWC) and later under Charter's Spectrum brand name, denied customers the reliable and fast Internet service it had promised."

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