WASHINGTON (AP) – The government is taking the nation’s biggest satellite TV provider to court, accusing DirecTV of misleading millions of consumers about the cost of its programming.
The Federal Trade Commission said Wednesday that its complaint charges DirecTV Inc. with deceptively advertising a discounted 12-month programming package. Consumers weren’t clearly told that the package requires a two-year contract, the commission said.
The FTC said the advertising did not make clear that the cost of the package would increase by up to $45 more per month in the second year and that hefty early cancellation fees – up to $480 – would apply. The allegations of deceptive advertising date back to 2007 and cover more recent marketing campaigns such as one in late 2014 that offered the company’s subscription service on a limited basis for only $19.99 a month.
“We require businesses to be truthful and to give consumers the information they need to make informed choices about goods and services,” said Jessica Rich, head of the agency’s consumer protection bureau. “Companies can’t hide important information from consumers to trick them into buying goods and services – and that’s what we allege DirecTV did.”
Rich said the commission would seek refunds for consumers. She did not say exactly how many people were involved but that a large portion of the company’s more than 20 million U.S. subscribers were affected.