IP Democracy: Missouri Attorney General Questions Broadband Pricing Ads

The Missouri Attorney General’s office has opened an investigation into advertising for low-priced high-speed service with a focus on SBC and “other” companies, presumably Missouri-based Charter Communications.

At issue is not the low priced options themselves ($14.95 for new customers for one year, in the case of SBC) but how the high-speed providers inform customers that their low rates are coming to an end once the introductory period is over. Missouri law requires companies to inform customers in a conspicuous fashion what their contract terms are, and in some cases, or so alleges the Missouri AG, some broadband providers automatically switch high-speed customers over to the highest monthly rate when the introductory period ends even though other, cheaper (such as annual contract extension) options may exist.

Posted by Cynthia Brumfield on August 8, 2005 12:27 PM to IP Democracy