AB 1177

Under this bill, no person may advertise as providing broadband service or sell

a service that the person represents as being broadband service unless the service

is capable of consistently providing a minimum download speed of 25 megabits per

second (Mbps) and a minimum upload speed of 3 Mbps, or the minimum download

and upload speeds to meet the Federal Communications Commission's designation

as an advanced telecommunications capability. Also under the bill, no person may

advertise as providing Internet service at a specific speed or sell Internet service that

the person represents as being at a specific speed unless the service is capable of

consistently providing that speed. If a person sells a service represented as

broadband service that does not meet the broadband speed requirements, or sells

Internet service represented as being at a specific speed that does not provide that

speed, the consumer is entitled to terminate the consumer's contract with the service

provider and receive a refund unless the service provider brings the speeds up to the

advertised speeds within one month of receiving notice from the consumer.

The bill also requires any person selling broadband service in this state to

provide a standardized consumer label that shows important consumer information,

on a template provided by the Federal Communications Commission, to each

broadband customer before a sale and to make these labels easily available to

potential consumers.

Under the bill, a person who violates the provisions of the bill is subject to

existing penalties under current law, which provide for a fine of up to $200 or

imprisonment for not more than six months or both. The bill also provides that a

violation of the provisions of the bill is an unfair method of competition in business

or an unfair trade practice, and that a person who suffers pecuniary loss because of

a violation may sue for damages and recover twice the amount of pecuniary loss as

well as reasonable attorney fees.