DIRECTV SETTLES CONSUMER 'DECEPTIVE' CASES WITH WV

(12/16/2010)

West Virginia Attorney General Darrell McGraw announced yesterday that West Virginia and 48 other states and the District of Columbia have reached a $13.25 million settlement with satellite television provider DirecTV. All of the states, following investigations, alleged that the company engaged in "deceptive" and "unfair" sales practices. DirecTV also agreed to pay restitution to consumers and to alter its business practices in the future. THE COMPLAINTS * Did not clearly disclose to consumers the price that the consumer would be charged and the commitment term that the consumer would be required to keep DirecTV services. * Did not clearly disclose to consumers limitations on getting a certain price for DirecTV. * Enrolled consumers in additional contracts or contract terms without clearly disclosing the terms to the consumer. * Enrolled consumers in additional contracts when replacing defective equipment. * Did not clearly disclose to consumers that they would automatically renew a seasonal sports package. * Promised refunds to consumers when the consumers would actually only receive a credit on their bills. SETTLEMENT AGREEMENT * Clearly disclose all material terms to consumers. * Replace leased equipment that is defective at no cost to the consumer except shipping costs. * Not require the consumer to enter into a supplemental contract when replacing defective equipment. * Clearly disclose when a consumer is entering into a contract. * Clearly notify consumers before a consumer is obligated to pay for a seasonal sports package * Clearly disclose all limitations on the availability of local channels. * Not misrepresent the availability of sports programming. * Not represent that a consumer would receive a refund if the consumer would actually get a bill credit. * Clearly notify consumers at least 10 days before charging the amount of any cancellation or equipment fee.

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