AT&T sues Comcast over Xfinity ‘fiber-powered’ home internet

AT&T says Comcast misleads consumers by advertising its Xfinity home internet as “fiber-powered,” despite being delivered to customers' homes using copper wire.SAN FRANCISCO (CN) — In a battle of rival internet service providers, AT&T accused Comcast Friday of falsely advertising its internet and Wi-Fi services as “fiber-powered,” when in fact the majority of service is connected to customers’ homes using copper wire.In its complaint filed in the Northern District of California, AT&T claims that the large majority of Comcast’s internet services, marketed under the “Xfinity” brand, is run over a hybrid fiber-coaxial network, where the “critical ‘last mile’ connection to customers’ homes uses copper coaxial cable, not fiber.”Despite this, AT&T says Comcast markets its internet service as “Fiber-Powered internet” and “Fiber-Powered Wi-Fi,” conflating Comcast’s “inferior” hybrid copper-based services with fiber-to-the-home, or 100% fiber, services AT&T offers.“Comcast’s ‘Fiber-Powered’ claims are literally false or false by necessary implication. They are also impliedly false and misleading because they leave a substantial segment of reasonable consumers with the misleading impression that Xfinity’s ‘fiber-powered’ service delivers internet connectivity to consumers’ homes through fiber alone, leaving out the copper-wire connection from the node to the home,” AT&T writes. “The campaign deceives consumers, distorts competition, and appropriates the goodwill that AT&T’s 100% fiber network has earned.”AT&T provides examples of Comcast advertising its “fiber-powered” internet with fine-print disclosures that read: “Xfinity Internet is powered by fiber and connected to premises by coaxial cable.”AT&T argues that the ads intentionally do not disclose the difference between the services to mislead customers into believing their services are 100% fiber.“A consumer told that the internet service in her home is ‘powered by fiber’ reasonably expects all the benefits of 100% fiber internet that Comcast advertises. Because Xfinity’s connection to the home is through a copper wire, Comcast’s ‘Fiber-Powered’ label conveys a false message,” AT&T writes.AT&T claims it has invested substantial time and resources into developing a 100% fiber network and that Comcast’s development of a comparable service has lagged behind.AT&T accuses Comcast of purposefully designing its advertising to mislead customers into believing its products were comparable to AT&T’s and claims that every customer who switches from AT&T to Comcast under that false premise causes AT&T irreparable harm.“Customer acquisition and retention of existing internet subscribers are critical to AT&T’s business, hence AT&T’s substantial investment in a cutting-edge 100% fiber network. Comcast’s deceptive advertising compromises both,” it writes.Represented by Dallas-based law firm Reese Marketos, AT&T asserts claims of false advertising and unfair business practices. It is asking the court for damages and an injunction requiring Comcast to stop describing its hybrid fiber-coaxial service as “Fiber-Powered.”In a statement to Courthouse News, an AT&T spokesperson said that companies should be transparent with the services they are offering customers.“We don’t think customers should have to be telecom experts or squint at the fine print to know what they’re buying. You wouldn’t call a half-gallon a gallon or a half-truth the whole truth. And a disclaimer doesn’t turn copper into fiber. When internet is marketed as fiber, customers deserve 100% fiber all the way to their home,” they said.A representative for Comcast did not immediately respond to a request for comment.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads