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Charter-Spectrum Reaches $174M Consumer Fraud Settlement

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Charter-Spectrum Reaches $174M Consumer Fraud Settlement
The New York Attorney General sued the internet company in 2017 alleging that Spectrum's internet speeds were 80 percent slower than advertised.
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The New York Attorney General's Office has reached at $174.2 million consumer fraud settlement with the parent company of internet provider Spectrum. 

It stems from a lawsuit filed in 2017 by then-state Attorney General Eric Schneiderman. He alleged the company defrauded customers by providing broadband speeds that were up to 80 percent lower than advertised. 

Here's how that payout will break down: $62.5 million will be refunded to 700,000 active Spectrum customers. They'll each get between $75 and $150. 

More than $100 million will go toward offering complimentary streaming services and premium cable channels to more than 2 million New York customers.

As part of the settlement, Spectrum will also have to make some marketing and business changes in order to accurately describe its internet speeds. 

The state's current attorney general, Barbara Underwood, said the settlement represents a "wake-up call" to companies serving New York consumers. 

According to Underwood, this is the biggest consumer payout by a U.S. internet service provider.