The stock of Comcast Corporation (NASDAQ:CMCSA) closed at $40.41 losing 1.00% in yesterday’s trading session. There is no doubt about it that indeed Comcast is a well performing stock. However, it is crucial to point out the fact that over quite some time it has engaged in the act of defrauding quite a significant number of customers in Washington State.
Reports indicate that the Comcast had been signing up customers without moving ahead to ask for their consent and that has resulted in much uproar. It has been accused of introducing a service plan for numerous services that it wasn’t offering to customers. The state’s attorney general has been quick in his reaction and has gone to court to file the lawsuit against the company.
The lawsuit kick started back in August 2016 and it alleged breathtaking fraud. A number of analysts got down to asses about 1,500 Comcast service calls with customers who had proceeded to signing up for the plan.
One of the lawyers suing the company said, “Comcast deceptively added the SPP to many of its Washington customers’ accounts without their knowledge or consent. On many occasions, the SPP was not even mentioned by Comcast to the customer on the telephone call where the SPP sale allegedly occurred.”
He added that the company had proceeded to sign up a large number of customers though it is said that quite a significant number of them rejected the plan.
It was also evident that the service protection plan itself had been carefully tailored in such a way that it would end up delivering quite minimal in terms of the actual protection. The original lawsuit outlined that more often than not it ended up failing when it came to covering the repairs.
There are claims that Comcast spent quite little in dealing with the actual repairs that were related to the plan. What resulted from the whole thing was that the fees –including those associated with those customers that rejected the plan-turned into profit. It goes without saying that indeed Comcast has a difficult times ahead in trying to repair its image.