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Sunday, January 9, 2011

DIRECTV agrees to stop deceptive practices

(Phoenix, Ariz - Dec. 28, 2010) Attorney General Terry Goddard, along with the attorneys general of 48 other states and the District of Columbia, has settled an investigation involving DIRECTV that will pay
refunds to consumers who have unresolved complaints. The states alleged that the satellite TV provider engaged in deceptive and unfair sales practices. DIRECTV agreed to alter its business practices in the future.

The settlement also calls for DIRECTV to pay $185,000 into Arizona’s consumer fraud resolving fund, which supports consumer education, fraud investigations and litigation. Other participating states will receive similar payments.

DIRECTV customers who have unresolved complaints sent to DIRECTV or the Attorney General that involve conduct addressed in the settlement and which occurred after Jan.1, 2007, are eligible for refunds. Customers can file a complaint with DIRECTV or the Attorney General by May 31, 2011 to be considered for the refund program as long as the complaint is about activity that occurred after Jan.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.

Consumers can contact the Attorney General’s Office to file a complaint or re-open an unresolved complaint, if it involves an issue covered by the settlement. To contact the Attorney General's Office in Phoenix call 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431.

To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site, www.azag.gov.  Consumers can also file complaints online by visiting http://www.azag.gov/consumer/complaintform.html

Arizona received complaints that DIRECTV:
● Did not clearly disclose to consumers the price the consumer would
be charged and the commitment term 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.
● 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.
● Clearly notify consumers that they will be charged a cancellation
or equipment fee at least 10 days before charging the fee.

2 comments:

danielle.royster said...

Why does a company have to agree to stop deceptive practices? What ever happened to ethical and fair business procedures and policies? This is exactly why I do not have DIRECTV today. I've had almost every business there is to have and I am the most satisfied with DISH Network. I work and subscribe to their service and I see if from both standpoints. One being a consumer and another being an employee and I know that DISH is looking out for my best interests. With over 40,000 complaints from customers and an "F" rating from the Better Business Bureau, I have opted to never get DIRECTV service. After doing much research, I can honestly say I am completely happy with the decision I have made for myself.

*Danielle

Anonymous said...

And it has done nothing to stop the "unconscionable sales practices" of the Company. I had one of the same issues detailed in the complaint occur this week.

The AZ AG only took in $185K of a $13.25 settlement that was shared with all the States. But, what do we expect from an AG who makes concerted efforts to stimy the will of the people in the implementation of several voter inspired initiatives.