The Ugly: The High-Speed Network Recovery Fee Bait and Switch.
“Bait and switch is a morally suspect sales tactic that lures customers in with specific claims about the quality or low prices on items that turn out to be unavailable in order to upsell them on a similar, pricier item. It is considered a form of retail sales fraud, though it takes place in other contexts.” https://www.investopedia.com
The words “Hi-Speed Network Recovery Fee” do not appear in the Installation and Distribution Agreement signed between ABB and Century Village,June 5,2017. Yet, the last line on residents' present ABB Internet bill reads “Hi-Speed Network Recovery Fee $5.25”. How, then, can this charge – originally $3.25 in 2018, then $4.25 in 2019 – be added to ABB's stated internet rates?
How? By what might be called “sleight of word”: Unethical, as shown by four quotations from the above Agreement; and perhaps illegal, as determined in 2019 by Washington state.
(1) From the Agreement, page 3,
“Rates are exclusive of taxes and other governmental fees, which will be passed through to the owner, as applicable”. (my emphasis)
(2) From the Addendum thereto,page 1:
“Increases in taxes or other bona-fide governmental fees shall not be deemed to be included in the Bulk Rate Price...and such verified taxes and verified governmental fees may be passed on to the owner at the time such increase are imposed on Company.”
(3) Op cit: page 2: “Except for the Company's increases in taxes and other governmental fees, the Bulk Rate Price is guaranteed for one year....Each year thereafter, including any Renewal term, the Bulk Rate Price will be increased an amount equal to one dollar and twenty-five cents ($1.25).”
Please understand that “Governmental fees” are legit: ABB must collect and pass through to local, state, and federal authorities.
(4) Now for the “sleight of word”: From “Exhibit A”, the “Company's Select Discount Program direct-to-resident prices for additional retail services...”: (chart showing)
“Starter Internet $17.99; Express Plus Internet $21.99; Unleashed Plus Internet $44.99”
“Applicable fees, taxes and surcharges will apply and are not included in the above rates.” (page 17 of 19)
Please notice that (a) “governmental” has disappeared, replaced by “applicable” and (b) “surcharges” has suddenly appeared. Simply put: ABB can now charge Century Village Internet users any amount it pleases – and call the $$ “applicable” or “surcharge”.
Illegal? In 2019, Washington state fined Century Link (another Internet provider) for the same deceptive Internet Cost Recovery Fee :
HIDDEN FEES —
Lawsuit forces CenturyLink to stop charging “Internet Cost Recovery Fee”
Settlement brings refunds to customers but applies only in Washington state.
https://arstechnica.com/tech-policy/2019/12/lawsuit-forces-centurylink-to-stop-charging-internet-cost-recovery-fee/
CenturyLink has agreed to pay a $6.1 million penalty after Washington state regulators found that the company failed to disclose fees that raised actual prices well above the advertised rates. CenturyLink must also stop charging a so-called "Internet Cost Recovery Fee" in the state
"CenturyLink deceived consumers by telling them they would pay one price and then charging them more," Washington Attorney General Bob Ferguson said in an announcement yesterday. "Companies must clearly disclose all added fees and charges to Washingtonians."
Ferguson encouraged Washington residents "who believe they have received bills that include undisclosed fees to file a complaint" with the state.
Ferguson's office said it began investigating CenturyLink in 2016 "after receiving complaints from consumers that their actual bills were more than the advertised price, or the price that they were promised by sales representatives."
Fascinatingly, Abb's individual residential customers are specifically informed that stated rates do not include a “High-Speed Network Recovery Fee”:
“Atlantic Broadband may charge additional service-related fees and surcharges, including without limitation, a Local TV Surcharge, a Sports Programming Surcharge and a High-Speed Network Recovery Fee (collectively, “Surcharges”)....The “High-Speed Network Recovery Fee” recovers a portion of our investment to expand network capacity to deliver faster Internet Service. Such Surcharges may be increased by Atlantic Broadband at any time to reflect increases in Atlantic Broadband’s costs, even if you have subscribed to a promotional package for a set rate for a certain period of time. Promotional pricing is exclusive of these Surcharges, taxes and governmental or regulatory fees. (https://atlanticbb.com/sites/default/files/Atlantic_Broadband_Residential_Subscriber_Agreement_1.pdf, page 1)
Yet Century Villagers are left in the dark.
Richard Handelsman
