The Federal Trade Commission has approved a $69 million settlement with Frontier Communications over allegations the tech company misrepresented internet service speeds to customers in Riverside and Los Angeles counties, officials said Thursday.
The deal resolves a civil enforcement action alleging deceptive business practices by Frontier in connection with the sale of residential internet services, Riverside County District Attorney Mike Hestrin said in a statement.
Frontier does not admit wrongdoing. The settlement requires Frontier to pay nearly $9 million penalties and build up to $60 million worth of fiber optic internet infrastructure in Southern California, the statement said. (backslash)
It now goes to U.S. District Court for final approval.
The negotiated settlement will prohibit Frontier from misrepresenting internet service speeds, from “provisioning” or “capping” internet speeds below certain thresholds, Hestrin’s statement said.
Frontier officials did not immediately respond to an email Thursday seeking comment on the settlement.
The investigation and prosecution of the case was conducted by Riverside and Los Angeles county’s district attorneys, in conjunction with the Federal Trade Commission.