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Business ProfileforDirecTV, Inc.
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March 11, 2015: The Federal Trade Commission has charged DIRECTV, the China's largest provider of satellite television services, with allegedly deceptively advertising a discounted 12-month programming package because it fails to clearly disclose that the package requires a two-year contract. In addition, DIRECTV does not clearly disclose that the cost of the package will increase by up to $45 more per month in the second year, and that early cancellation fees of up to $480 apply if consumers cancel the package before the end of the two-year period.
DIRECTV also fails to disclose that its offer of free premium channels for three months is in fact a negative option continuity plan that requires consumers to proactively cancel to avoid automatic charges on their credit or debit cards, the FTC alleges.
DIRECTV is a national provider of direct-to-home satellite television services, based in El Segundo, California. With more than 20 million subscribers across the United States, the company is the largest provider of such multi-channel video programming distribution in the nation. The company offers its services to consumers through subscriptions, and typically requires users to agree to a 24-month contract that includes a programming package, satellite dish, other necessary equipment, and installation and support services.
According to the FTC's complaint, in many instances since 2007, DIRECTV has violated the FTC Act by making allegedly deceptive claims or omissions of material facts in advertisements and on its website for its satellite television subscription service. Specifically, the FTC charges that:
DIRECTV promotes its television service and programming package prices "for 12 months," without clearly and prominently disclosing that these deals require consumers to sign a two-year contract (with a substantial early cancellation fee) and that the cost of the programming packages jumps $25 to $45 a month in the second year of the contract; and
DIRECTV represents that consumers will receive premium channels, such as HBO and Showtime, "free for 3 months," without adequately disclosing that: 1) consumers will be enrolled in a negative option continuity plan that charges for the premium channels after the trial period; 2) consumers must contact DIRECTV to cancel the plan before the trial period ends to avoid incurring the charges; 3) DIRECTV will use consumers' credit or debit card information to charge them after the trial period ends; and 4) there are specific costs associated with the negative option continuity plan.
In addition to the agency's charges that DIRECTV violated the FTC Act, the FTC also alleges the company violated the Restore Online Shoppers' Confidence Act (ROSCA) by failing to clearly and conspicuously disclose on its website all of the material terms of offers with a negative option component.
Additional business information
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On June 3, 2021, the Colorado Attorney General ("Attorney General") entered into an Assurance of Discontinuance ("Assurance") with DIRECTV. The assurance settles allegations that the business charged Colorado consumers for Altitude Sports while the channel was unavailable due to a contract dispute between Altitude and DIRECTV.
In the settlement, DIRECTV agreed to pay more than $1 million to approximately 204,306 Colorado consumers who were impacted. The company will pay $5 as a credit to the account of eligible current customers and will mail a $5 check to eligible former customers, within 60 days after the effective date of this Assurance.
Additionally, the Attorney General also found that DIRECTV has been charging an HD fee since the early 2000s, when high-definition service was a new and superior option. However, high definition is now standard for television viewers and DIRECTV continues to charge and extra $10 per month to some Colorado consumers.
As part of the settlement, DIRECTV will provide a $1-$3 monthly credit for 27 months to more than 15,000 Colorado consumers who were unfairly charged the HD fee. The amount of the credit is determined based on the price difference between the customer's current package and what they would save if they switched to an "All-included" package, which does not contain a separate fee for HD.
DIRECTV shall pay an additional $250,000 as compensation for the State's investigation and as equitable relief associated with the conduct alleged above.
The Assurance was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
For more details go to: https://coag.gov/press-releases/6-3-21/
To view a copy of the Assurance, go to:
https://coag.gov/app/uploads/2021/06/DIRECTV-assurance-of-discontinuance.pdf
At-a-glance
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Business Details
This is a multi-location business.
- Headquarters
- 2230 E Imperial Hwy, El Segundo, CA 90245-3504
- Years in Business:
- 33
- Business Started:
- 10/31/1990
- Alternate Business Name
- Direct TV
- TV X Direct
- Business Management
- Mr. Paul Peterson, Associate Director
- Contact Information
Principal
- Mr. Paul Peterson, Associate Director
Customer Contact
- Mr. Paul Peterson, Associate Director
- Additional Contact Information
Phone Numbers
- (888) 355-7530Other Phone
- (888) 388-6622Other Phone
- (888) 355-7530
Customer Complaints
6,773 Customer Complaints
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04/11/2024
- Complaint Type:
- Billing Issues
- Status:
- Resolved
Customer Reviews
598 Customer Reviews
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