If you watch television, you’ve no doubt seen commercials advertising DirecTV for $19.99 a month, with free premium channels and other incentives to get you to drop your remote and call to sign up for their satellite service. On March 11, 2015, the Federal
Trade Commission (“FTC”) announced that DirecTV hasn’t been so honest about their fees and terms in connection with their discounted service packages and filed a complaint for deceptive advertising.
The FTC is charging DirecTV, the largest satellite provider in the country with over 20 million subscribers, with misleading customers about their advertised 12-month discounted programming packages by failing to clearly disclose that the offer is contingent
upon the customer entering into a two-year agreement for service. The lawsuit also goes on to allege that DirecTV doesn’t clearly disclose that the price for service could increase by up to $45 a month during the second year of service; that an early termination
fee of up to $480 could apply if services are cancelled before the end of the two-year agreement; and that free premium channels, such as HBO, offered with advertised packages, requires cancellation by the customer before the end of the free three-month trial
in order to avoid automatic charges to the customers’ accounts. The FTC is seeking refunds for the customers affected, redress, and a court order to ban the company from these types of practices in the future.
In light of the recent action against the popular company, consumers should be reminded of how important it is to check the fine print and get detailed information before agreeing to any services. Business Consumer Alliance offers the following tips:
- Always read and understand ALL terms and conditions of an agreement prior to giving your consent.
- Check into what others are saying about the business or their offer. In this day and age, information is right at your fingertips. Conduct an Internet search for reviews and complaints that others may have posted.
- Make it a habit whenever you are considering doing business with a company to always obtain a BCA reliability report.
- When reviewing offers online, check for pre-checked boxes that may give a business the green light to charge fees or impose other conditions.
- Review cancellation, refund, and other policies to make sure you are aware of how to implement each stage if necessary.
- If you agree to a trial, be mindful of when the trial ends so that you may cancel within the allotted timeframe and avoid additional fees or penalties.
- Monitor your statements and accounts for any unauthorized transactions or increase in charges.
Visit BCA’s report on
DirecTV to view their rating and read consumer
complaints about the company.
About Business Consumer Alliance
Business Consumer Alliance (BCA) is a non-profit company which started in 1936. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint
information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is
to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization
and who agree to abide by high standards of ethical business practices.