Washington AG sues DirecTV, alleging unfair sales tactics |
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Washington state's attorney general, Rob McKenna, filed suit today against DirecTV, alleging a series of deceptive sales tactics and saying that the nation's largest satellite television provider was responsible for more consumer complaints to his office than any other business during the past year.
The suit, filed in King County Superior Court, alleges that the company's marketing materials fail to adequately disclose fees, terms for equipment leases, automatic rate changes and other charges that make prices higher than they appear in the company's ads. McKenna says state residents have filed 375 complaints over DirecTV this year.
In a statement responding to the suit, DirecTV disputed the allegations and downplayed the volume of complaints.
“We always strive to provide 100 percent customer satisfaction but, to put it in perspective, we are talking about less than one percent of our customer base in this area," said the DirecTV statement. "The vast majority of our customers in Washington State, and the U.S. for that matter, understand our lease agreement and are happy with our overall service. We are disappointed that the state elected to file a lawsuit. We believe their allegations lack merit, and we are confident the court will agree with us."
The suit (PDF, 27 pages) cites numerous situations where McKenna's office contends that DirecTV violated the state's Consumer Protection Act. For example, the suit says the company tacks on as much as 24 additional months to a customer's contract term when it replaces malfunctioning equipment or upgrades them to a better satellite receiver.
Rob McKenna
Along the same lines, the suit says the company automatically renews season-based subscription packages such as "NFL Sunday Ticket" for new seasons unless the customer specifically cancels the package.
As another example, the suit cites a February 2009 ad for DirecTV promoting a television package for $29.99. The ad encourages prospective customers to "Lock in your price for one year!" However, the suit says, "Defendants failed to disclose that after 12 months, the full price of $52.99 would be applied to the remaining 12 months of the period of service. The customer's cost for the second half of the contractual term would be 77% higher than the first half."
The suit also cites a series of alleged misrepresentations, including an advertisement for a "free" portable DVD player that actually comes with a system lease charge of $34.99, plus shipping and handling.
We'll be following this case as it unfolds.
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