FTC Charges DirecTV With False Advertising

[Poke]

They could do that to a lot of providers..

http://www.dslreports.com/shownews/FTC-Charges-DirecTV-With-False-Advertising-132943

 

[mike123abc]

https://www.google.com/url?sa=t&rct...m1QdicEOHUDbBaBPQ&sig2=3K8pndkKsVjUcWmZ5qYzXA

WSJ reports:

The Federal Trade Commission filed a civil lawsuit against DirecTV in California federal court Wednesday, alleging that the satellite-TV giant engaged in deceptive advertising.

In its complaint, the FTC accused DirecTV of failing to adequately disclose in advertisements and on its website that consumers will be charged more after certain of its pay-TV offers and promotions expire.

DirecTV, in response, defended its ads.

“The FTC’s decision is flat-out wrong, and we will vigorously defend ourselves, for as long as it takes,” a DirecTV spokesman said in an emailed statement. “We go above and beyond to ensure that every new customer receives all the information they need, multiple times, to make informed and intelligent decisions. For us to do anything less just doesn’t make sense.”

In one offer, the FTC said DirecTV didn't clearly tell consumers who sign on for a free, three-month promotion of premium channels like HBO and Showtime that their credit or debit cards would be automatically charged after the period is up. It “requires consumers to proactively cancel” before the trial period ends, the FTC said.

The article goes on to say that the FTC intends to get a court order to bar similar practices and to collect damages for consumers.

 

[dvrexpander]

While they are at it they should look at the practices of how Direct and others mangle pay from its employees on the other side of the table.

 

[Claude Greiner]

They should sue Dish also.

 

[john262]

Good for the FTC. It's about time they did something about that. On Directv's TV ads they advertise a teaser rate in big letters on the screen then they flash a disclaimer on the screen in small unreadable letters and it's only on the screen for a second or two. I know they are not the only ones who do it but suing them is a start.

 

[dodger72]

what a joke no merit

 

[Tampa8]

My first thought was you could go after any number of companies based on that criteria. I do know one of the complaints, the $19.99 starting package claim has received numerous complaints that it isn't actually offered unless you press them, and may not last more than three months. But they do have disclaimers for most everything in about the same way as so many other offers from companies. I feel they do clearly note the second year there will be increases, the problem is most other carriers make their new customer price for the full two years, including DISH. But to be fair, some including DISH do or can increase the package price if it goes up for everyone and there is a disclaimer for that.

Then on FBN they clarified why Direct TV is being singled out.
"In the case settled in 2010, state prosecutors alleged that DirecTV offered special deals with hidden costs, such as higher prices in the second year. DirecTV also was accused of extending customers' contracts without their knowledge and failing to deliver promised sports channels and other programming.

In that settlement, DirecTV agreed to "clearly and conspicuously disclose, in direct proximity" to an advertised price, all "material limitations" on all future offers.
http://www.latimes.com/business/la-fi-ftc-directv-20150312-story.html

The FTC feels that condition is not being met after being warned and fined about it.

 

[Jimbo]

Good for the FTC. It's about time they did something about that. On Directv's TV ads they advertise a teaser rate in big letters on the screen then they flash a disclaimer on the screen in small unreadable letters and it's only on the screen for a second or two. I know they are not the only ones who do it but suing them is a start.

You got it ...
The info was there, you saw it and read it.

This has been going on with D* and every other company in one form or another ...
This will bring it to light, but a major amount of people already know about it.

These charges have been in effect for as long as I can remember.

 

[Claude Greiner]

I'll be honest, I looked at a Directv ad I saw today and it was hard to find where it said $19.99 was a promotional price. Took me 3-4 minutes to find it in the fine print, and only because I knew what I was looking for.

What makes matters even worse, that it's impossible to get $19.99 because they now charge a $6.50 receiver lease fee.

I really wish Directv would just offer the promotional price for 2 years.

This Crap that they do $19.99 and then $49.99 in year 2 is killing sales when you disclose the truth.

They would be better doing $29.99 in year 1, $39.99 in year 2 and going to $49.99 in year 3.

 

[Bruce]

When I signed up for DirecTV about 6-7years ago ( I left after 2 years) the CSR said nothing about the price going up after one year or about being in a contract, they just gave the price with 2 boxes and said nothing else except welcome to DirecTV.

I of course knew about the contract and the price issue because of being a member here but for the average person it could be quite the surprise.

 

[n4uaj]

I have been with them since 2001 and it was made clear to me that the promotional price would roll off at the end of the first year and every single time that I have added or upgraded a box, they have told me over and over and over again that this will trigger another 2 year contract. There has never been a question in my mind that would be the case. I always figured why not? without subscribing to their programing, all a receiver is is a good doorstop. I will say that I have always dealt with Directv on the phone directly so there may be some third party dealers out there that don't make it clear.

 

[Claude Greiner]

The truth is embarrassing

 

[mdram]

prior to signing up for dtv i went to the website, and was ablt to see the price for each month from 1-24, and after 24

nothing hidden, anyone that does a bit of looking can find it

comcast and dish do the same thing, nothing new
i consider the hopper 'record up to 6 shows at once' more false then this

 

[ChadT41]

prior to signing up for dtv i went to the website, and was ablt to see the price for each month from 1-24, and after 24

nothing hidden, anyone that does a bit of looking can find it

comcast and dish do the same thing, nothing new
i consider the hopper 'record up to 6 shows at once' more false then this

But it is "record up to 6 shows at once with primetime anytime".

 

[mdram]

But it is "record up to 6 shows at once with primetime anytime".

with no mention of "4 must be ABC,CBS,NBC, FOX" so you can only choose 2

 

[ChadT41]

It says with Primetime Anytime, so if you look a little lower on all their ads about that, it explains the PTAT is the 4 networks.

 

[Ziptied]

My first thought was you could go after any number of companies based on that criteria. I do know one of the complaints, the $19.99 starting package claim has received numerous complaints that it isn't actually offered unless you press them, and may not last more than three months. But they do have disclaimers for most everything in about the same way as so many other offers from companies. I feel they do clearly note the second year there will be increases, the problem is most other carriers make their new customer price for the full two years, including DISH.




The new customer programming discounts are for the 1st year only with DISH.

 

[JUCJ85]

Have never had an issue with this. When I signed up in 2006 they told me what the expected price would be after 3 months, as it was only a 3 month promotion, with NFLST free at the time.

 

[DishSubLA]

I had seen just 2 weeks ago DirecTV' site where the "promotional" price was clear, and next to it was slightly higher price crossed out, leading one to believe that the crossed out price was the "regular" price or the price one would pay AFTER the promo ended. There were NO indications of any kind that this slashed out price was NOT the REAL full price one paid at end of promotion. It was only my knowledge or DirecTV package prices that led me to scratch my head that a $69 package showed a $29 price slashed. I KNEW that package was NOT the price one would pay at end of promotion. It took me about 5 full minutes until I scrolled all the way to the very bottom of the page, in small print, and saw the disclaimer that the regular price for the package was much higher about $69, and that would be the rate subscribers would have to pay at the end of promotion. I don't think I've seen ANY other MVPD use such practices on their website.

Also, AFAIK, DirecTV was the ONLY MVPD who would renew a subscriber's 2 year equipment without telling the subscriber upon replacing a RMA set-top-box. DirecTV was singled out not only because of its UNIQUE deceptive practices, but also because DirecTV subs complained to the govt. in sufficient numbers. DirecTV is a good service, but I know a lot of people who were victims of what the FTC says DirecTV did. Those folks were plenty angry, and it is sad that such a great service like DirecTV had to stoop so low, but that is because it is a very expensive service and has a hard time competing in price, but even Ergen alluded to DirecTV's higher cost and more expensive "network" some time after he had seen DirecTV's books of the failed DTV and Echostar (Dish) merge. It was a quick remark, but not one that would have violated the NDS agreement, but does reflect that DirecTV just can't cut much from its pricing tiers to compete on price, and NFL ST is a big part of that, as well. Al these practices are WHOLLY under the Mike White era. Yes, MIke does well for DirecTV on Wall Street and Mike has had DTV respond well under terrible competitive pressure, but at a terrible price to DirecTV's credibility. Now, the ugly cable companies are more forthcoming and many do NOT require a commitment and will pay any sat ETF's. It is not good when DirecTV makes the cable cos. look like angels. And when Mike White makes Cheap Charlie look wholly reputable, that's when you know DTV has gone too far. I hope Mike and DTV find their way back and out of the FTC's cross hairs. DirecTV used to have such CLASS before the current CEO.

I recently upgraded to DWS at Dish, and was offered to have the disclosures emailed to me to peruse and approve if I did not want to accept a verbal disclosure. That was before the FTC filed it charges.

What we'll see here is some agreement and maybe a discount of $10 to DTV subs, but we hope a cleaner Mike White DTV era from that day on.

 

[ChadT41]

Are you talking about a comment Ergen made in 2002(3) after the failed merger attempt?