Consumer Reports documents the deceptive cable industry practices used to hike real prices 24% over advertised ones
This report exposes how the cable industry is using the practice of hidden, sneaky fees to disguise the true cost of cable service and increase revenue, and how much those fees are costing consumers. It then arms consumers and policymakers with the information they need to help fight back. An analysis of nearly 800 cable bills collected from consumers across the country shows that: * Company-imposed fees, from Broadcast TV and Regional Sports Fees to Set-Top Box Rental Fees, add what amounts to a 24% surcharge on top of the advertised price. * On average, the cable industry generates close to $450 per year per customer from company-imposed fees, helping explain why CR’s survey found that nearly six in 10 (59%) Americans who encountered unexpected or hidden telecom fees in the past two years say the fees caused them to exceed their budgets. * Based on the total number of U.S. cable subscribers and our findings, cable companies could be making an estimated $28 billion a year from charging company-imposed fees. * The average cable bill contains more than a dozen line-item charges, including the base package price, company-imposed fees, regulatory fees, and taxes, creating a jumbled environment ripe for consumer confusion How Cable Companies Use Hidden Fees to Raise Prices and Disguise the True Cost of Service [Jonathan Schwantes/Consumer Reports] Cable companies use hidden fees to raise prices 24% a month [Jon Brodkin/Ars Technica] (via /.)