Feds Sue DirecTV for False Advertising

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El Segundo satellite TV giant DirecTV is being sued by the Federal Trade Commission, which charges the firm with deceptively advertising a discounted 12-month programming package.

The FTC claims customers were not told a two-year contract was a required part of the package. It was also unclear that the cost of the package could go by as much as $45 a month in the second year and that customers could have to pay up to $480 if they tried to cancel the contract early, according to the FTC.

In a statement Wednesday, DirecTV spokeswoman Cara Brugnoli said the company has done nothing wrong.

“The FTC’s decision is flat-out wrong and we will vigorously defend ourselves, for as long as it takes,” she 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 to bar DirecTV from being able to continue that type of advertising and is seeking a monetary judgment so consumers can be refunded.

DirecTV had to pay $5.3 million in 2005 after violating the do-not-call provisions of the FTC’s telemarketing rules and was forced to pay $3.21 million in 2009 to settle separate FTC violations.

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