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StumbleCox accused of antitrust violations over cable TV boxes
Monday, April 6, 2009 | 10:38 a.m.
Beyond the Sun
Lawyers in Nevada and at least four other states have filed lawsuits against Cox Communications in recent weeks, accusing the company of antitrust violations for allegedly requiring customers to rent Cox's cable TV converter boxes to receive premium channels and services.
The suits, which seek national class-action status, claim Cox uses an unlawful "tying arrangement" that forces consumers to pay a rental fee for converter boxes provided by Cox in addition to the fee subscribers pay for premium channels such as HBO and premium services such as on-demand movies, digital video recording and high-definition programming.
At Cox headquarters in Atlanta, spokeswoman Amy Cohn on Monday said company lawyers are aware of the suits.
"Since this is pending litigation, I'm unable to comment specifically about this or any other related suit, other than to say that Cox intends to vigorously defend itself against this litigation," said Cohn, Cox's executive director, corporate reputation management.
One of the most recent suits was filed April 2 in U.S. District Court in Las Vegas by Cox customer Sandra Prezgay. That suit was filed by Las Vegas attorney Glen Lerner and New Orleans attorneys Jonathan Andry and Kea Sherman.
Similar suits were filed in state and federal courts last month against Cox in Arizona, Louisiana, Oklahoma and Florida.
The trade publication Multichannel News reported last year that suits over the same issue had been filed in California and Missouri against cable TV operators Comcast Corp. and Time Warner Cable.
The federal lawsuit in Las Vegas charges the alleged policy tying the purchase of premium services to the rental of descrambler boxes "impermissibly restrains trade" in violation of antitrust law.
"Cox forces plaintiff and members of the class to rent the boxes instead of offering the option to buy them or allowing plaintiff and members of the class to purchase the boxes directly from another source (i.e. directly from the manufacturer) even though the boxes perform the same function when bought on the open market," the suit charges.
This, the suit alleges, means consumers must pay "a significantly higher sum for cable television than would be required if the two products remained distinct."
"Since plaintiff and the class members can only rent a cable box directly from Cox, there is little incentive for other (converter box) manufacturers to enter the market, and those that do are precluded from renting or selling their products to plaintiffs ... at lower, market-driven prices," the suit alleges.
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I want my money back where do i sigh n up
I think about time that we as consumer speakup about the inflatted prices we must pay at the hands of Cox Communications. Its absolutely ridiculous that we cant buy the box but rent it for as long as we subscribe to the service. I also think there needs to be lawsuits against NV Energy,Southwest gas and put a end to these monopolies. Why do we only have one gas company and one power company? Im tired of the price increases right before summer from NV Energy. We are in a RECESSION and we can barely affford rates now. And if there's an increase why cant the casinos pay it they using the most energy.
Yep, just when times are tough alone.Cox is forcing folks to pay higher prices. Just take a look at Nevada power.....a 18% increase ? give me a break you greedy big guns ! Just take alook at the unemployment lines in Nevada.And theres more to come. And you guys want to suck what little money these folks have to take care of what they got. The bottom line is your profits. And overlook those who are in survival mode.Thats the American way these days, its no wonder we're in the shape we're in. Shame on you for not participating in helping America survive. I surely hope you experience some of the pain the people in Nevada are having. Its funny because, ya want people to recycle,go green, and conserve water, but monopolies want to increase costs to families that are just trying to make ends meet. I hope these lawyers prove you are wrong in doing this.....but then again, you'll probably pass this on to customers. So whos going to lose in all of this? Of course the American families !
1) You don't have to rent a cable box from Cox, so the lawsuit and article are technically incorrect. However even if you buy a cablecard compliant box (TiVo HD), you still cant get VoD and PPV without calling Cox to order it. And you still have to rent a cablecard for $1.99/mo. But at least you don't have to deal with that awful SA user interface.
2) Cox's price increases are due to agreements that are forced on them by Disney/ABC, Viacom, etc, that require 10% price increases every year, otherwise Cox loses ESPN and a large chunk of subscribers to the dish.
Siromega: your post intrigued me, so I just called Cox. Sadly, you would appear to be incorrect. After checking with her supervisor, the rep I spoke with confirmed that there is no way to avoid the monthly rental charge.
I find it odd that we have to rent the HDDVR converter box and cannot buy the HDDVR coverter box outright from Cox. Seems Cox also charges you an extra $10 on your internet priveleges, should you return to basic cable. I wonder if satellite charges to install their product if you already have a dish? I'm sure Cox has a cancellation charge, too. Although hearsay, Cox has installed their cable throughout the valley. Wouldn't this make it even more difficult for other companies to enter the market as they would have to provide a percentage to sales to Cox?
Republicans want companies to operate with no regulation. This is what happens. We pay more for everything.
Republicans made Exxon rich and will do the same for the utility companies. Time to put a stop to it.
Nick, you do realize the Repubs aren't in charge anymore, right?
Maybe Obama will give you free cable since he's giving everything else away.
Do what I do watch local channels, www.hula.com for the special shows and get skype for $1.24 a month unlimited nation wide calls. Why even support them? Take your money and cancel cox.
Tv shows and movies on line www.hula.com
http://www.skype.com
And just steal your internet service from all the wireless networks in your neighborhood.
LasVegas2009
I think you meant to write www.hulu.com
Yeah your right www.hulu.com & www.b4city.com has the links to skype
OFF WITH THERE HEADS
- DARN THIEVES -
I WISH WE HAD MORE CABLE PROVIDERS -
COX'S IS TOO EXPENSIVE!!!!!
WHY ON EARTH would anyone want to buy a flawed, cable box to begin with? All you have to do is search online for '8300HD problem' or '8240HDC problem' and you will find out why paying $300 is not a good idea. Be careful what you wish for. You can currently exchange boxes pretty much at will when a problem arises (and they will arise). It is easier for cable installers to swap out your box instead of wasting too much time troubleshooting the existing box.
Technically you can buy your own box in the form of Tivo provided the cable company makes it easy for you to get Cable Cards for it. That has been another issue all together. Tivo's can be purchased outright in the form of a Lifetime Service for $400 (no monthly service fee) on top of the price of the box.
Cable is an inferior product compared to Satellite. I would pick either Dish or DirecTV. You get a much larger selection of HD programming.
Cox is a ripoff company and their customer service is non existent.
In addition, cable modem is inferior to dsl.
If the City of Henderson didn't give Cox the exclusive right to provide internet, I would be long gone. Just spent 2 hours on the phone asking why my cable, phone and internet was $136. Got it cut to $115. Big deal. The City and Cox are in bed together, and Mayor Jim is happily under the covers. With who? I don't want to ask...
Shouldn't this story disclose the relationship between the Greenspun Corp. and Cox Communications?
getalife, In the nearly three months Obama has been in office he deregulated cable television raised the prices and forced people to rent cable boxes. Do you right wing nut jobs ever stop? One thing is for sure the only people who got the hand out from Bush were the wealthy,corporations,banks,investment houses,insurance companies,drug companies,hospitals,defence contactors,and anyone who donated to him or his lying administration. I am going to call the White House and inquire as to why in the last few weeks Obama had a cable television agenda and why it was not announced. Get a life.
Hearing everyone complain about cable,and your answer is easy! get rid of it all together! i am on rabbit ears,have a cell phone,and an air card for my laptop.Dont like what your paying,drop it! Its that easy.
Damn you, uddeboda, all that plus pretty Tiger Woods blondes. Just wish you had warmer weather.