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Cable Television

Introduction

Cable television is primarily regulated by the U.S. Federal Communications Commission (FCC), a federal agency, which was established by the Communications Act of 1934. The FCC is responsible for regulating interstate and international communications by radio, television, wire, satellite and cable. In New York State, the Public Service Commission (PSC) oversees the performance of the cable television industry and prescribes standards for procedures and practices which municipalities follow in granting franchises.1

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Federal RegulationsFederal Regulations

The Cable Television Consumer Protection and Competition Act of 1992 is a federal act that amended the Communications Act of 1934 to provide increased consumer protection and to promote greater competition in the cable television (CATV) and related markets. The Act was amended by the Telecommunications Act of 1996, particularly with respect to the regulation of cable rates.

The FCC's Media Bureau enforces regulations designed to ensure that cable rates are reasonable under the law. The FCC is also responsible for regulations concerning "must carry," retransmission consent, customer services, technical standards, home wiring, consumer electronics, equipment compatibility, indecency, leased access and program access provisions.

Local Regulation and Customer Standards

The Federal Communications Act requires cable operators providing service to hold a franchise, and establishes several policies relating to franchising requirements and fees. A "cable operator" is a person, or group of persons providing cable service over a cable system, and owns a significant interest in such systems, or who otherwise controls or is responsible for the management and operation of such a system. Under the Act, a franchising authority may award one or more franchises within its jurisdiction. A "franchising authority" is a governmental entity empowered by federal, state, or local law to grant a franchise. A franchising authority may not grant an exclusive franchise and may not unreasonably refuse to award an additional competitive franchise. In awarding a franchise, the Federal Communications Act provides that a franchising authority shall assure that access to cable service is not denied to any group of potential residential cable subscribers because of the income of such group in the local area.

Pursuant to the 1992 Cable Act, the Commission adopted federal guidelines which provide a standard for improving the quality of customer service rendered by cable operators. These guidelines provide minimum levels of service which should be provided by an operator. They address issues such as the cable operator's communications with customers over the telephone, installations, service problems, changes in rates or service, billing practices, and information that must be disclosed to all customers. Although the standards were issued by the Commission, local franchising authorities are responsible for adopting and enforcing customer service standards. Franchising authorities may also adopt more stringent or additional standards with the consent of the cable operator or through the enactment of a state or municipal law. Premium and pay-per-view services remain unregulated by both the federal and local governments. Under the federal guidelines, each cable system must maintain a local, toll-free or collect-call telephone line available twenty-four (24) hours a day, seven (7) days a week for the purpose of customer service inquiries.

Subscriber Rights

If the cable operator fails to provide notice of a network or significant programming change as required by law, an affected subscriber may either terminate or downgrade his/her service without charge.

Where an affected subscriber receives notice of a programming change, and elects in person, in writing, or by telephone within forty-five (45) days of receiving such notice to terminate or to downsize, no penalty may be imposed by the cable television company for such action.

Where the change involves the discontinuance of significantly promoted programming, for example, the consumer may decide within thirty (30) days to terminate or downgrade service, or the subscriber may also demand the following: (1) a rebate of all installation, upgrade, and other one-time charges and (2) a rebate of monthly service charges already paid by the subscriber for each cable television service affected by a network or programming change. The rebate is limited to the prorated amount already paid for the period following the date of the network or programming change.

Trouble Calls

Under the law, any trouble call should be responded to (this does not necessarily mean repaired, but rather the customer is contacted) on the day it is received by the company. In no event shall the response be later than the following business day, unless the customer has been contacted for an appointment to be rescheduled in advance. Subscribers may request morning or afternoon appointments for service calls (or evening or Saturday hours where available). A missed appointment where consumers have not been previously informed of a cancellation, entitles consumers to a free service call or installation.2

Billing Practices

Every cable television company must notify its subscribers in writing of its billing practices and payment requirements. The notice must describe or define billing procedures (including payments necessary to avoid discontinuance of service and payment due dates), late charges, advance billing options, billing disputes, and credit given for service outages. This notice must be given to:

Copies of the company's billing practices and requirements must be filed with the PSC and made available at the company's local office upon request by the subscriber.

Billing Disputes

All cable bills must itemize rates and charges. Payment of a bill is due no sooner than fifteen (15) days from mailing. Every company must allow thirty (30) days from the date of receipt of the bill for a subscriber to register a billing dispute before an account may be considered delinquent. A subscriber must remit the undisputed portion of his/her bill and be responsible for undisputed portions of current and future bills, pending resolution of the dispute.

Cable television service cannot be disconnected solely for non payment of the portion of the bill in dispute during investigation of the complaint. A subscriber must be notified of the results of the investigation within twenty (20) working days of filing, mailing, or receipt of the complaint.

If a dispute is not resolved within thirty (30) days after it was received, the subscriber may refer it to the PSC. If the subscriber is not satisfied with the resolution and does not file a complaint with the PSC within thirty (30) days of the company's reply, the company may initiate service disconnection procedures.

Late Charges and Collection Charges

A collection charge is a fee imposed upon a subscriber by a cable television company for its effort at collecting or attempting to collect an overdue bill by personal visits at a subscriber's home or place of business. A reasonable collection charge can be added to a subscriber's bill, when a subscriber pays the amount of money due in lieu of disconnection of service. This reasonable collection charge must be in compliance with PSC regulations. A late charge is a fee which is added to a cable television subscriber's account or bill for nonpayment of a previously due account. A late charge may not be imposed prior to forty-five (45) days from mailing of the bill.Disconnection of Service

Disconnection of Service

The procedure for service disconnection for nonpayment of bills must include the following:

The notice of disconnection must clearly state the amount owed, the total amount required to be paid to avoid disconnection, and the date and place where such payment must be made. Disconnection of service for non payment may not occur on a Sunday, public holiday, or a day when the local office of the company is not open for business. Receipt of a "bad" check by the company in response to a notice of disconnection does not constitute payment, and a company need not give further notice of disconnection. A reconnection charge may not be imposed solely because a subscriber was previously delinquent with his/her account.

Credit for Service Outage

A cable television company must give credit for every service outage not caused by a subscriber in excess of four (4) continuous hours to any subscriber who applied for it either by written or oral notice. The four (4) hour period commences at the time the cable television company first becomes aware of the outage.

The credit must be prorated by multiplying the applicable monthly service rate by a fraction whose numerator equals the number of days (or portion thereof) of the outage and whose denominator equals the number of days in the month of outage. If the cable outage exceeds four (4) continuous hours, the consumer will be credited a twenty-four (24) hour credit. A subscriber may request a credit up to ninety (90) days after the outage.

Advance Billing

Every cable television company shall notify its subscribers of the availability of any advance billing options. A subscriber, upon request, must be given the option of paying monthly. Use of coupon books for remittance of monthly payments satisfies the monthly payment option request. If such coupon books are used by the company, no other bills for service are required to be sent out by the cable television company.

Landlord/Tenant

Tenants in primary service areas may not be denied cable television service by a landlord regardless of any existing private satellite or master antenna system. Landlords or trailer park owners may not discriminate in rental charges, or otherwise, between tenants who receive cable television service, and those who do not.

Theft of Cable Services

The Cable Communications Act of 1984 "prohibits" the unauthorized reception of communications service over a cable system. Theft of service occurs when people use "bootleg" or tampered equipment or receive cable programming to view without paying for that right. Tampering or modification to a cable provider's cable lines or equipment may also be theft of service. Theft of cable service is punishable by fines and/or imprisonment.

Complaints

An individual subscriber can no longer file rate complaints directly to the FCC. The PSC or local franchising authority can file a rate complaint with the FCC within ninety (90) days of the rate change after it receives at least two (2) subscriber complaints of the same content. If a consumer experiences problems with his or her cable television service, he or she should first contact the cable operator and report the problem.

The local or state franchising authority can resolve questions or complaints about the following issues:

If the cable operator fails to resolve a problem, consumers should contact their local government (since it is the franchising entity), or the PSC at:

Customer Service Representative
New York State Public Service Commission
3 Empire State Plaza
Albany, New York 12223 1350
518-474-2213

The FCC should be contacted with consumer complaints or questions regarding:

Federal Communications Commission
Consumer & Governmental Affairs Bureau
Consumer Inquiries and Complaints Division
445 12th St., S.W.
Washington, D.C. 20554

To file a complaint electronically, visit http://esupport.fcc.gov/complaints.htm.

Digital Television Transition

The digital television transition refers to the switch from analog to digital television broadcasts. Beginning on June 12, 2009, all United States television (TV) stations will be required to stop broadcasting in analog format and to transmit in digital format only. Viewers who receive "free" over-the-air television either through a rooftop antenna or "rabbit ears" will be affected by this transition. Consumers who currently subscribe to a cable or satellite TV company should not be affected by this change.

The government has decided to make this switch to help police, fire, and other public safety departments communicate more easily. Digital broadcasting will free up the airwaves to improve public safety communications and provide new and advanced wireless services for consumers.

Consumers should check with their cable companies in advance to make sure they are hooked up to cable or satellite. Consumers who already have a digital TV are ready for the switch; however, televisions which are analog-only with a roof top antenna will not be able to watch most TV stations after June 12, 2009, without a "converter box." Consumers are able to purchase converter boxes through certified retailers of electronics. The price of each box is estimated at $50-$70. A separate box is needed for each analog television set relying on an antenna or "rabbit ears" to receive television broadcasts.

Before the switch, consumers should make sure to ask what connectors are needed to ensure that any new digital TV equipment will work with other electronic equipment (i.e., DVD player, digital video recorder (DVR), camcorder, VCR, computer, video games, etc.). The electronic equipment should work with the new digital TV, but might need new or different cables. Consumers should inquire with retailers as to what they need in order to make a smooth transition.

For more information about the digital transition, call the FCC at 1-888-225-5322 (voice) or 1-888-835-5322 (TTY) or go to www.dtv.gov.

Cable Television Privacy Act of 1984

The Cable Television Privacy Act of 1984 was passed to protect consumers' personally identifiable information (which is any information that can be obtained and then traced back to a specific individual, i.e. name, address, phone number, Social Security number, and financial or medical information) from being disclosed without prior explicit consent from the consumer. Additionally a cable operator is responsible for ensuring that actions are taken to prevent unauthorized access to personally identifiable information of their customers by entities other than the operator. The cable subscriber, or customer, must have access to their personally identifiable information that the operator has collected, and be able to correct any information that is incorrect. Once the personally identifiable information is no longer relevant, (i.e., the consumer is no longer a customer), the cable operator is responsible for destroying the information. If there have been any unlawful disclosures of personally identifiable information by the cable operator either directly, or indirectly, the consumer is entitled to file a civil law suit, and seek actual damages, punitive damages, and reasonable attorneys' fees.

There are a few exceptions when the disclosure of personally identifiable information is permitted by the cable operator. These exceptions include:

  1. N.Y. Public Service Law   215. (2009).↑

  2. 16 NYCRR Chapter VIII Part 890 et seq. (2009).↑

Last Modified: April 28, 2011