Post by Skaggs on Dec 15, 2010 7:51:13 GMT -5
DirecTV to pay millions to settle charges it mislead consumers in 48 states
Published: Tuesday, December 14, 2010, 11:58 AM Updated: Wednesday, December 15, 2010, 7:37 AM
Sheryl Harris, The Plain Dealer
CLEVELAND, Ohio -- DirecTV will pay restitution to thousands of consumers to settle charges by 48 states, including Ohio, that it misled consumers about its prices and contract terms.
The amount of restitution will be decided based on the number of claims filed with attorneys general since 2007, according to the Ohio attorney general's office.
In Ohio alone, more than 1,700 consumers have complained about the satellite television company's practices since that year, Attorney General Richard Cordray said in a release.
Consumers who believe they may be eligible for restitution will have 150 days to file complaints with their attorney general's office if they have not done so already.
In addition, the company will pay $13.5 million to the states for investigative and legal costs.
DirecTV said the agreement covers its advertising, customer service and its policies regarding third-party retailers.
The company said in a statement that while it believed most of its 19 million customers are happy, "we recognize that we don't get it right every single time."
The company said it had already made changes in many areas addressed in the consent agreement and that those changes would be in effect in all 50 states.
The 48 states that participated in the agreement alleged that the company:
As part of the settlement, the company agreed to fully disclose prices and terms to consumers, tell consumers if they are required to pay for sports packages and tell consumers when they are entering into a contract.
The company also agreed not to move consumers into new contracts when it replaces defective equipment and not to offer cash back if it intends to only offer credits.
To file a complaint with Ohio's attorney general, visit ohioattorneygeneral.gov or call 1-800-282-0515.
Consumers elsewhere should contact their states' attorney general's office.
In addition to Ohio, participating states are Alabama, 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, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming and the District of Columbia.
Published: Tuesday, December 14, 2010, 11:58 AM Updated: Wednesday, December 15, 2010, 7:37 AM
Sheryl Harris, The Plain Dealer
CLEVELAND, Ohio -- DirecTV will pay restitution to thousands of consumers to settle charges by 48 states, including Ohio, that it misled consumers about its prices and contract terms.
The amount of restitution will be decided based on the number of claims filed with attorneys general since 2007, according to the Ohio attorney general's office.
In Ohio alone, more than 1,700 consumers have complained about the satellite television company's practices since that year, Attorney General Richard Cordray said in a release.
Consumers who believe they may be eligible for restitution will have 150 days to file complaints with their attorney general's office if they have not done so already.
In addition, the company will pay $13.5 million to the states for investigative and legal costs.
DirecTV said the agreement covers its advertising, customer service and its policies regarding third-party retailers.
The company said in a statement that while it believed most of its 19 million customers are happy, "we recognize that we don't get it right every single time."
The company said it had already made changes in many areas addressed in the consent agreement and that those changes would be in effect in all 50 states.
The 48 states that participated in the agreement alleged that the company:
- Failed to clearly disclose the price that the consumer would pay for the service and the commitment term required to keep DirecTV services.
- Failed to clearly disclose limitations on advertised prices.
- 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 a seasonal sports package would automatically renew.
- Offered cash back to consumers but actually only provided bill credits.
As part of the settlement, the company agreed to fully disclose prices and terms to consumers, tell consumers if they are required to pay for sports packages and tell consumers when they are entering into a contract.
The company also agreed not to move consumers into new contracts when it replaces defective equipment and not to offer cash back if it intends to only offer credits.
To file a complaint with Ohio's attorney general, visit ohioattorneygeneral.gov or call 1-800-282-0515.
Consumers elsewhere should contact their states' attorney general's office.
In addition to Ohio, participating states are Alabama, 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, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming and the District of Columbia.