Court Rejects Class-Action Waiver In Comcast Arbitration Agreements

ATLANTA (CN) - Comcast cannot force Georgia subscribers to arbitrate class-action claims accusing the cable TV provider of charging excessive franchise fees, the 11^th circuit ruled.

Subscribers claimed Comcast calculates its "pass-through" franchise fees by estimating future profits from advertising sales and home-shopping channel commissions. The estimates allegedly allow Comcast to charge customers more than it pays in franchise fees and keep the excess. The district court dismissed and compelled arbitration based on binding arbitration agreements. The circuit reversed, concluding that the agreements are unenforceable because they include an "unconscionable" class-action waiver that lets Comcast "engage in unchecked market behavior that may be unlawful." See ruling in .

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