The Senate confronts cable companies over hidden fees
A bipartisan U.S. Senate investigation exposed how big cable companies disguise programming costs as fees — and the Senators are still demanding clear answers for consumers.
1 The Senate Subcommittee’s Investigation
You probably recall the hearing held by the U.S. Senate Permanent Subcommittee on Investigations in June, 2016. The investigation centered around the customer service and billing practices of cable and satellite television providers like Comcast and Charter/Time Warner. The Subcommittee outlined numerous deficiencies and sneaky billing practices as well as a misrepresentation of fees on customers’ bills that “obscured the cost of programming.” At the hearing, the Senate demanded answers and, unfortunately for consumers, did not receive satisfactory ones.
2 Senators Keep Up the Pressure
After a scathing review of the service providers’ billing practices, U.S. Senators Claire McCaskill (D-Mo.) and Rob Portman (R-Ohio), the top ranking Democrat and Republican Chairmen of the Permanent Subcommittee on Investigations, continue their mission to expose the underhandedness and dishonesty of some of the biggest cable companies in the United States. In fact, the companies that testified at the hearing are so big, they provide service to over 70 million subscribers, representing more than half of all American households.
3 How Cable Companies Disguise Fees
In letters written to Charter/Time Warner and Comcast, the Senators wrote, “At the hearing, we expressed our concern that [Charter/Time Warner, Comcast] and their competitors obscured the cost of programming by categorizing some programming costs as fees, such as the ‘“Broadcast TV Surcharge”’ or ‘“Regional Sports Network Fees.’” McCaskill and Portman also stated that, “We found that [Charter/Time Warner, Comcast] grouped those fees alongside taxes and regulatory charges. Such placement is misleading in that it suggests to the subscriber that the government requires the cable or satellite provider to impose these charges. As you are aware, no federal, state or local government levies the Broadcast TV Surcharge or Regional Sports Network Fee, which are charged entirely at the discretion of [Charter/Time Warner or Comcast].”
4 What This Means for Consumers
This bipartisan investigation has publicly substantiated what many consumers have felt in recent years: the crushing frustration of hidden fees and rampant overbilling. It’s no surprise that, according to a recent American Customer Satisfaction Survey that studied 43 different industries, pay television service has ranked almost at the bottom.
While the Senate Investigation is a huge step in the right direction, the road to sweeping reform in the industry may be a long one. At BILLSHARK, we support the government’s efforts to protect consumers and our mission is to do our part: help our customers fight back, one bill at a time.
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Frequently Asked Questions
What did the U.S. Senate investigation into cable companies find?
The U.S. Senate Permanent Subcommittee on Investigations, in a hearing held in June 2016, examined the customer service and billing practices of cable and satellite providers like Comcast and Charter/Time Warner. It outlined numerous deficiencies, sneaky billing practices, and a misrepresentation of fees that obscured the cost of programming. The Senate demanded answers but did not receive satisfactory ones.
Which Senators led the investigation into cable billing practices?
U.S. Senators Claire McCaskill (D-Mo.) and Rob Portman (R-Ohio) led the effort. They were the top ranking Democrat and Republican Chairmen of the Permanent Subcommittee on Investigations, and they continued their mission to expose the underhandedness and dishonesty of some of the biggest cable companies in the United States.
How do cable companies disguise programming costs as fees?
According to the Senators, companies obscured the cost of programming by categorizing some programming costs as fees, such as the Broadcast TV Surcharge or Regional Sports Network Fee. They grouped those fees alongside taxes and regulatory charges, misleadingly suggesting the government required them, even though no federal, state, or local government levies those charges.
How many subscribers do these cable companies serve?
The companies that testified at the hearing are so big that they provide service to over 70 million subscribers, representing more than half of all American households. That scale is part of why the bipartisan investigation drew so much attention to their billing practices.
How does Billshark help consumers fight unfair cable bills?
Billshark supports the government’s efforts to protect consumers, and its mission is to help customers fight back, one bill at a time. While the Senate investigation is a huge step in the right direction, the road to sweeping industry reform may be long, so Billshark works directly on customers’ bills to push back against hidden fees and overbilling.
