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23-State Panel Probing Cable Pricing Policies : Television: The task force is looking for evasions of the new rate law. Several loopholes allow companies to skirt the rules’ intent.

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THE WASHINGTON POST

A task force of attorneys general from 23 states, including California, has launched an investigation of major cable television companies to determine whether some industry marketing practices evade a new federal law.

The 23 states, also including Virginia, Florida and New York, are looking into price increases that occurred since the rate regulations went into effect Sept. 1. Consumers and federal lawmakers have complained that cable companies took advantage of a law designed to control prices, by taking advantage of loopholes the Federal Communications Commission left in the rules.

The task force is concerned with practices such as “negative option marketing,” or charging a cable subscriber a fee for a service the subscriber did not explicitly request. Some cable companies, for example, have automatically charged their customers for optional services such as wiring insurance. The charges are removed only when the customer demands it.

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Officials involved in the investigation say that while some of these practices may not be explicitly outlawed under the FCC’s rules, they violate the intent of Congress. The states are attempting to document industry practices to compel Congress or the FCC to rewrite the regulations. Failing that, the task force is prepared to challenge cable operators in court, said Jack Norris, a Florida assistant attorney general who is coordinating the group.

The states group has begun demanding documents and other materials from cable companies around the nation, although it could not be determined which companies are under scrutiny.

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