DirecTV Settles Wisconsin Lawsuit
Wisconsin Attorney General Peg Lautenschlager settled a consumer protection lawsuit filed against DirecTV that alleged the satellite TV company violated the state's telecommunications laws.
As part of the settlement, DirecTV will pay $115,000 in forfeitures and litigation costs, the state attorney general's office said.
The lawsuit alleged that DirecTV violated state law by failing to disclose to consumers all material terms of agreements at the time a customer subscribed to the service. The complaint further alleged that DirecTV violated Wisconsin law by requiring customers to agree to mandatory arbitration of disputes, thereby surrendering their rights under Wisconsin law to certain remedies, such as recovery of damages and attorney's fees.
The settlement requires DirecTV to make the disclosures required by Wisconsin law, including any fees for disconnecting before the end of a prescribed subscription period. Also, there are assurances that any arbitration requirement does not compel consumers to waive any remedies provided by state law, the office said.
In a statement, DirecTV said while it agreed to settle the lawsuit the company has "denied any violations of the Wisconsin regulations, and believes that it has always adequately disclosed the terms of its service to consumers. Moreover, DirecTV believes federal law preempts Wisconsin from attempting to regulate the way satellite service is provided to consumers.
"DirecTV agreed to the settlement to resolve the dispute and to eliminate the uncertainties and costs associated with litigation," the company said.