FTC Announces Charges Against DirecTV for Allegedly Misleading Customers
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ljhimages/iStock Editorial/Thinkstock(NEW YORK) — The Federal Trade Commission announced charges against satellite television provider DirecTV on Wednesday, claiming that the company misled its customers on the cost of its programming.
DirecTV allegedly advertised a 12-month programming package without disclosing that the deal required a two-year contract. That contract would increase by $45 per month in the second year, and come with early cancellation fees of $480.
“DirecTV misled consumers about the consumers about the cost of its satellite television services and cancellation fees,” FTC Chairwoman Edith Ramirez said in a statement. “DirecTV sought to lock customers into longer and more expensive contracts and premium packages that were not adequately disclosed.”
Ramirez called it “a bedrock principle that the key terms of an offer to a consumer must be clear and conspicuous, not hidden in fine print.”
As of December 2013, DirecTV had over 20 million subscribers in the U.S. It is unclear how many users may have been impacted by their allegedly misleading marketing.
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