NY AG Fines Companies That Spammed FCC With Fake Comments

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The nation’s largest broadband companies funded a secret campaign to persuade the FCC to repeal its net neutrality rules in 2017, according to the office of New York Attorney General Letitia James. As part of a deal, four companies involved with the generation of fake comments will pay a total of more than $4 million in penalties.

Net neutrality prohibits broadband providers from blocking, slowing down, or charging companies to prioritize certain content on the internet. The Office of Attorney General James’ (OAG) says a multi-year investigation uncovered widespread fraud, as well as abusive practices used to sway government policy — using masses of comments and messages to create the false impression of popular support. It became involved because one of the comments was from a deceased New York resident. His identity had been stolen and the comment was fabricated, according to the OAG.  

Broadband companies, which the OAG did not name, spent a total of more than $8 million on the campaign. “The campaign was run through a non-profit organization funded by the broadband industry called Broadband for America (BFA). BFA’s executive committee, made up of senior executives from the broadband companies and trade groups that had contributed to the effort, oversaw the campaign, along with its lobbying firm based in Washington, D.C., which managed the day-to-day operations,” states the OAG.

Many of these comments provided “cover” for the FCC’s repeal of net neutrality rules, notes the OAG. This practice — disguising an orchestrated, paid campaign as a grassroots effort, to create a false appearance of genuine, unpaid public support — is often called astroturfing. “To help generate these comments, the broadband industry engaged commercial lead generators that used prizes — like gift cards and sweepstakes entries — to lure consumers to their websites and join the campaign. However, nearly every lead generator that was hired to enroll consumers in the campaign, instead, simply fabricated consumers’ responses,” notes the OAG. As a result, more than 8.5 million fake comments that impersonated real people were submitted to the FCC, and more than half a million fake letters were sent to Congress.  

The fines come after a 2021 Attorney General report that found over 18 million of the 22 million comments on the net neutrality repeal were fake. While there were signs of trouble at the time, the FCC under then-Chairman Ajit Pai did not investigate and address the spam, according to Engadget

The OAG says it’s working with law enforcement partners across the country to hold those involved accountable. The three lead generators that have settled with the OAG are: Fluent, Inc., React2Media, Inc., and Opt-Intelligence, Inc. The settlements require the companies to pay $3.7 million, $550,000, and $150,000 respectively, for their misconduct. The settlements also impose reforms for any future campaigns to protect consumers and prevent fraudulent comments.

By Leslie Stimson, Inside Towers Washington Bureau Chief

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