updated 02:10 pm EST, Fri December 26, 2008
Comcast faces lawsuit
Internet and cable TV provider Comcast is being sued by its customer, Cheryl Corralejo, for requiring its customer to pay rental fees for its set-top and CableCARD boxes in order to view premium content and not giving them the option of buying them outright. The class-action lawsuit was filed at the end of November at the US District Court for the Eastern District of California and alleges Comcast's practice violates the Sherman Anti-Trust Act as well as business and professional codes.
Corralejo argues the practice results in customers effectively paying more in rental fees for the set-top boxes than the devices are worth. While Comcast does offer CableCARDs customers can plug into hardware, such as compatible HDTVs, said hardware must be rented from Comcast. The option also restricts the interactive features as it is a one-way solution and still has associated rental fees for all but the first time-sensitive CableCARD.
Corralejo is seeking compensatory and other damages in addition to attorney fees, court costs and interest. Comcast lawyers were granted an extension to respond to the allegations on December 17th and the company has until January 30th to file a response. [via Multichannel]