AG King Announces Settlement With DirectTV
By: Stephen Crews
Updated: December 15, 2010
Attorney
General Troy King today announced that Alabama is
among the states that have reached an agreement for DIRECTV to pay
$13.25 million to settle consumer protection allegations. The states
alleged that the satellite TV provider engaged in deceptive and unfair
sales practices.
In addition to the $13.25 Million, DIRECTV also agreed to pay restitution
to consumers and to alter its business practices in the future.
“I
am pleased that DIRECTV has agreed to change its marketing practices
and that consumers will receive restitution for problems they have
experienced,” said Attorney General King. “This is a significant
achievement that better protects consumers. I encourage all Alabama
citizens who have had these types of problems with DIRECTV
to file a claim for restitution. ”
The state received complaints that DIRECTV:
· 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; and
· Offered
cash back to consumers when the consumer would actually receive bill credits.
The settlement requires DIRECTV to:
· Clearly
disclose all material terms to consumers;
· Replace
leased equipment that is defective at no cost except shipping costs;
· Not
require the consumer to enter into an additional contract when simply 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 get cash back if the consumer would actually get a bill credit; and
· Clearly
notify consumers that they will be charged a cancellation or equipment fee at least 10 days before charging the fee.
CONSUMER REFUNDS:
Unresolved complaints sent to DIRECTV or the Attorney General that
involve conduct addressed in the settlement and occurred after January
1, 2007 are eligible
for the restitution program. These consumers who already have filed and
have pending unresolved complaints do not have to re-file for
restitution. Other consumers may file a complaint with DIRECTV or the
Attorney General by June 9, 2011, to be considered
for the restitution program as long as the complaint is about activity
that occurred after January 1, 2007. DIRECTV will attempt to resolve
the complaints with consumers. If the complaint cannot be resolved,
DIRECTV shall inform the consumer that the complaint
can be resolved by a Claims Administrator and mail a Claim Form to the
consumer. The Claims Administrator will then resolve the dispute
between the consumer and DIRECTV.
To file a claim for restitution, consumers can file a complaint on DIRECTV’s website at www.directv.com/ag,
or by calling 1-800-DIRECTV. Alternatively, consumers can file a consumer complaint with the Attorney General’s office by visiting the website at www.ago.alabama.gov,
by writing to 500 Dexter Avenue, Montgomery, Alabama 36130, or by calling the Consumer Protection Hotline at 1-800-392-5658.
In
addition to the Alabama Attorney General, others participating in the
agreement announced today include the Attorneys General of Alaska,
Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida,
Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland, Massachusetts, Michigan,
Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New
Hampshire, New Jersey, New Mexico, New York, North Carolina, North
Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South
Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming and the District of Columbia.
