The FTC has charged DirecTV with deceptively advertising a discounted 12-month programming package, saying it fails to disclose that it requires a 2-year contract.

In its complaint, the FTC also said DirecTV fails to disclose that the cost of the package will increase up to $45 more per month in the second year and that early cancellation fees of up to $480 apply. The agency also alleges the satellite provider fails to disclose that its offer of free premium channels for 3 months requires consumers to proactively cancel to avoid automatic charges on their credit or debit cards.

DirecTV said the decision is “flat-out wrong.” “We will vigorously defend ourselves, for as long as it takes,” the company said. “We go above and beyond to ensure that every new customer receives all the information they need, multiple times, to make informed and intelligent decisions. For us to do anything less just doesn’t make sense.”

The FTC is seeking a court order that permanently bans DirecTV from such conduct, as well as a monetary fine that could be used to provide refunds to consumers. A conference call is scheduled for 1pm ET with reporters on the action. The Commission voted 5-0 to approve the complaint, filed in US District Court for CA’s Northern District.

“DIRECTV misled consumers about the cost of its satellite television services and cancellation fees,” said FTC Chairwoman Edith Ramirez in a statement. “DIRECTV sought to lock customers into longer and more expensive contracts and premium packages that were not adequately disclosed. It’s a bedrock principle that the key terms of an offer to a consumer must be clear and conspicuous, not hidden in fine print.”

The Daily

Subscribe
Friday–December 13

State of DEI: NAMIC, AIM Analyze Workforce Representation

At a time when investments in DEI efforts are being questioned, NAMIC is checking in to remind the industry of the tangible change these initiatives are making.

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Apr 16
Cablefax 100 Awards Nominations Open November 13th, 2024.
Full Calendar

Jobs

Seeking an INDUSTRY JOB or hiring for one?
VIEW JOBS

In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors. The result will be an even more robust industry job board, to help both employers and job seekers.

Contact Carley Ashley, [email protected], for more information about posting a job on the website and our Jobs newsletter, sent twice weekly to 85,000 media professionals.