DirecTV Settles for $5 Mln Plus Refunds

By: Geoff Duncan •
December 12, 2005
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DirecTV has settled a multi-state investigation into its advertising and marketing practices for $5 million, plus refunds to thousands of customers.

Satellite television provider DirecTV has agreed to pay $5 million and restitution to thousands of customers to settle a 21-state investigation into complaints about the company’s advertising and marketing practices, undisclosed fees, channel availability, and cancellation policies.

The settlement was announced by the office of New York Attorney General Eliot Spitzer. The investigation began in early 2003 in response to consumer complaints regarding DirecTV satellite service; customers reported that advertised shows and local programming weren’t always available, specific sports programming was sporadically blacked out, reception was poor, and cancellation fees were both unfair and not disclosed upon entering into a DirecTV subscription contracts.

Under the settlement, DirecTV has agreed to pay restitution to customers who:

were charged a fee for not activating DirecTV in a timely way
paid for but did not receive all local channels they expected to receive
were assessed a fee for terminating service before the “free programming offer” period expired

DirecTV also agreed to inform fully subscribers about the total costs and scope of fees associated with DirecTV service, and clearly disclose fees, monthly charges, promotional offer obligations, early termination charges, channel limitations, minimal service level requirements, and sports programming blackouts in its advertising. The states’ investigation found DirecTV’s previous advertising and markting materials often featured small, unreadable print which modified DirecTV offers, and that DirecTV locked consumers into contracts without fully outlining their financial commitments regarding DirecTV service.

The agreement covers Delaware, Florida, Georgia, Idaho, Illinois, Kansas, Maryland, Massachusetts, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Vermont, and West Virginia. Customers may be eligible for restitution if they filed complaints their state’s attorneys general or with DirecTV at: