Hawaii and other states settle with DirecTV for $13.5 million
DirecTV will pay the state of Hawaii $185,000 as part of a $13.25 million settlement with state attorneys general over alleged misleading marketing about its prices and contract terms.
The alleged violations include deceptive advertising, contracts, pricing and promotional offers and failing to clearly disclose cancellation fees, said Connecticut Attorney General Richard Blumenthal, who helped negotiate the accord,.
The state’s share of the settlement will pay for investigative and legal costs incurred because of the lawsuit, a spokesman for state Office of Consumer Protection said.
There have been about a dozen complaints filed in Hawaii with the Office of Consumer Protection against the satellite television company since 2006.
“DirecTV was anything but direct with consumers, conning them with confusing contracts, deceptive ads and misleading promotions,” Blumenthal said.
Darris Gringeri, a spokesman for DirecTV, said the company entered into the agreements “to formalize the improvements we’ve made to our business.”
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“We were already in the process of implementing the majority of the improvements and changes outlined in the agreement when we were first contacted by the AGs,” he said in a phone interview. “The remainder will be completed within the next few months.”
Nationwide, DirecTV has 19 million customers. No figures were immediately available on the number of DirecTV subscribers in Hawaii.
Consumers who believe they may be eligible for restitution will have 150 days to file complaints with the state Office of Consumer Protection.
The states that participated in the settlement alleged that the company:
>>Failed to clearly disclose the price that the consumer would pay for the service and the commitment term required to keep DirecTV services.
>> Failed to clearly disclose limitations on advertised prices.
>> 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 a seasonal sports package would automatically renew.
>> Offered cash back to consumers but actually only provided bill credits.
The company also agreed not to move consumers into new contracts when it replaces defective equipment and not to offer cash back if it intends to only offer credits.
In addition to Hawaii, participating states are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming and the District of Columbia.
Bloomberg News contributed to this story.