Is Spectrum cable 'misleading' customers? Why New York says it's so

ALBANY - State regulators are continuing to criticize Spectrum cable over its efforts to expand broadband access in New York, urging the cable company to "cease and desist" false advertising and misleading statements.

The state Department of Public Service on Tuesday sent a letter to Charter CEO Thomas Rutledge that alleges the company has failed to meet its goals to add high-speed internet to underserved parts of New York.

The agency demanded that Charter Communications stop suggesting it is exceeding its benchmarks, again threatening to strip the company of its license in New York.

“The situation regarding Charter/Spectrum is getting more serious with each passing day,” John Rhodes, the PSC chairman, said in a statement. 

“Not only has the company failed to meet its obligations to build out its cable system as required, it is now making patently false and misleading claims to consumers that it has met those obligations."

Spectrum again disputed the state's assertions — which is that Charter, which acquired Time Warner Cable in 2016, has not fulfilled its obligations under the state's approval of the acquisition.

“The fact is that Spectrum has built out our broadband network to more than 42,000 unserved or underserved homes since the merger," Charter said in a statement. 

"We find it baffling that the PSC thinks that some New Yorkers count and others don’t, given their belief that access to broadband is essential for economic development and social equity.”

The accusations by the state were the latest battle with Charter, which is also in the midst of a union fight with its workers.

Gov. Andrew Cuomo, who is seeking a third term this year, has ripped the company over its gridlock with the union, and he has railed about the pace of its expansion of internet services.

Earlier this month, the PSC ordered Charter to pay a $2 million fine for not building out its cable network and expanding high-speed internet service.

A lawsuit over the issue is also proceeding in the courts, and the case was allowed to move forward by a state appeals court last week.

"The PSC should not back down to a media giant that has abused the people of the state in violation of its obligation to build out our broadband system," Cuomo said in a statement June 15.

In a letter to Rutledge on Tuesday, the agency contends that Spectrum is purposefully saying it is meeting its commitments, but is actually not doing so.

"Spectrum's publication of claims that it knows are false harm all consumers who rely on honest and accurate information in choosing suppliers from among competitors," wrote the agency's counsel Paul Agresta.

The PSC said it was referring its latest allegations to the state Attorney General's Office and the Securities and Exchange Commission.

The state agency charged that the Stamford, Conn., company failed to provide internet services to 18,363 addresses in many of New York's largest cities.

The majority were in New York City, but addresses that were bypassed included some in Buffalo, Rochester, Syracuse, Schenectady, Albany and Mount Vernon, the agency said.

New York is pushing to have the entire state covered with broadband access by year's end.

JSpector@Gannett.com

Joseph Spector is chief of USA TODAY Network's Albany Bureau. 

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