Cablevision accuses Verizon of false advertising in lawsuit

Cablevision (NYSE: CVC) is accusing Verizon (NYSE: VZ) of false advertising in a federal lawsuit it filed Tuesday, complaining that the telco is hurting its high-speed Internet business with an ad campaign that says its Optimum Online service delivers slower Internet connections than it advertises.

The suit was filed the day after the FCC said that Cablevision has taken efforts to increase its broadband speeds. In August, the FCC criticized Cablevision, which promises Optimum Online subscribers download speeds of 15 Mbps. The FCC said in August that Cablevision was delivering only 59 percent of its advertised speeds during peak hours. On Monday, the FCC said that Cablevision was delivering 90 percent of its advertised speeds in October.

"Despite extensive communication between Cablevision and Verizon, and Verizon's knowledge that the advertising is false, the phone company has continued its campaign on television, radio, print, in direct mail and on its Website," Cablevision said in a prepared statement Tuesday. The MSO filed the lawsuit in the U.S. District Court for the Eastern District of New York, asking the court for immediate relief.

Verizon said the telco's ads are based on the FCC's study on the accuracy of advertising for high-speed Internet providers, which was released in August.

"In terms of the accuracy of its advertising, Cablevision was the worst.  Verizon will defend Cablevision's lawsuit vigorously to ensure that consumers continue to receive truthful information about Cablevision's misleading Internet speed claims," the company  said in a prepared statement.

Verizon poses the biggest competitive threat to Cablevision in its core footprint in the New York metropolitan area. Attorneys for Verizon and Cablevision are becoming very familiar with each other. In the last year, the companies have fought in court on issues ranging from interactive TV patents to program access.

For more:
- see Cablevision news release

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