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DirecTV Will Pay States, Customers

Posted on: Tuesday, 13 December 2005, 18:00 CST

By Aman Batheja, Fort Worth Star-Telegram, Texas

Dec. 13--Texas and 21 other states OK'd a $5 million agreement with satellite-television operator DirecTV on Monday over the company's alleged use of deceptive marketing techniques, and some consumers will get refunds.

The lawsuit stemmed from ads dating back to 2000 that the states charged were misleading and confusing, according to court documents.

In the ads, DirecTV did not make clear that some customers would face additional charges and did not properly specify certain limits or details on equipment offers, according to court documents. For instance, some customers were charged a fee for ending their service before a "free programming" offer expired.

Also, in ads that promoted the availability of local channels through DirecTV's service, the company failed to make clear that all local channels may not be available in all areas. Similarly, in ads promoting sports packages, the company didn't clearly state blackout restrictions for local sporting events.

"Texas consumers need to be fully apprised of the level of programming they are buying, and there should be no surprises when they receive their monthly bills," Texas Attorney General Greg Abbott said.

Although not admitting guilt, DirecTV agreed to pay $5 million to be split among the 22 states and refund money to consumers who were misled by the ads. The company also agreed to make all charges and restrictions clear in future ads.

"DirecTV denied the allegations and believes that at all times it has complied with advertising disclosure requirements and all applicable laws," the company said in a statement.

DirecTV will ultimately issue refunds to "thousands of customers," according to a statement on the settlement released by Elliot Spitzer, attorney general of New York.

DirecTV customers in Texas who feel that they were misled by the company's ads can file complaints with the Attorney General's Consumer Protection Division at www.oag.state.tx.us or via a toll-free hot line at (800) 252-8011.

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Copyright (c) 2005, Fort Worth Star-Telegram, Texas

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Source: Fort Worth Star-Telegram (Fort Worth, Texas)

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