NJBPU settlement provides Optimum customers refunds, six months of free broadband service
NEW JERSEY — The New Jersey Board of Public Utilities has approved a settlement with Optimum Communications that will provide refunds to certain customers and six months of free broadband service through the company’s low-income program.
The settlement resolves eight years of litigation over Optimum’s failure to prorate final bills for cable television customers who disconnected service, which the NJBPU said violated its rules.
“This settlement holds Optimum accountable and delivers restitution to customers who were improperly charged,” said NJBPU President Ben Hertz-Shargel. “It also expands access to affordable broadband and ensures clearer oversight going forward. The Board’s priority is safeguarding ratepayers, and this settlement will help ensure Optimum’s full compliance.”
Under NJBPU rules, cable television bills must be prorated when customers start or cancel service so they only pay for the days they received service.
Under the settlement, customers affected by Optimum’s billing practices between Dec. 18, 2018, and May 5, 2023, will receive $37 refunds.
Optimum will also be required to extend its low-income broadband program to its entire New Jersey customer base without requiring income verification. Customers receiving service through the program will receive six months of free service delivered over a two-year period.
The settlement also includes heightened reporting requirements intended to ensure Optimum’s continued compliance with NJBPU customer service regulations.
The dispute began in 2018 after more than 100 customers reported that Optimum continued charging them for cable service after they canceled. The board issued an Order to Show Cause that December and a Cease-and-Desist Order in 2019 requiring the company to stop the practice and issue refunds.
Optimum challenged the board’s action in court, but the New Jersey Supreme Court and Appellate Division upheld the board’s authority in 2023 to require prorated bills and directed the company to comply.
Board staff, the New Jersey Division of Rate Counsel and Optimum negotiated the settlement, which the board approved Wednesday.
Customers with questions about the settlement or their eligibility for a refund can contact the NJBPU Division of Customer Assistance at 1-800-624-0241.
