Dish to refund $2 million to Washington customers

jpmarto

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Aug 26, 2007
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http://www.komonews.com/news/consum...illion-to-Washington-customers-255373121.html

"SEATTLE (AP) - Dish Network Corp. will reimburse Washington state customers about $2 million for a surcharge officials called deceptive, but the satellite TV provider denied wrongdoing in the agreement announced Tuesday by the state attorney general's office.

The Colorado-based company also will give existing customers who were charged the fee cash credit or access to free programming and pay the state nearly $570,000.

Dish denies the fee was illegal or deceptive, saying the state raised its business tax and the company was informing customers why prices were going up by listing a "Washington surcharge" on bills.

"When the state burdens businesses operating in Washington - and indirectly, Washington consumers - with a tax hike, we believe that the state should allow businesses to truthfully communicate with their customers about the burdens imposed by the state," Stanton Dodge, Dish Network's general counsel, said in a statement.

Dodge said the company decided to settle with the state to avoid a court fight.

The TV provider charged its Washington customers a dollar fee between May and December 2012 to recoup costs for the higher business tax. The "Washington surcharge" listed on bills was not advertised in the total cost of TV packages, the attorney general's office said.

Dish didn't accurately advertise true sales prices because it listed the surcharge separately, Washington state Attorney General Bob Ferguson said. He said that's not fair to customers or competitors.

"That buck at a time can add up to millions of dollars," Ferguson said.

Ferguson added that Dish can recoup the business tax if it's included in the total sales price.

Complaints about the surcharge first surfaced from concerned customers who called the attorney general's office, Ferguson said.

Customers affected by the fee will get an automatic reimbursement on their bills. If they no longer subscribe to Dish, they will get a check in the mail.

But people will have to sign up to receive the $10 cash credit or the free programming package of either two free pay-per-view movies or a two-month subscription to the Epix movie channel.

The cash credit could total about $3 million, depending on how many customers sign up, Ferguson's office said.

This isn't the first time the state attorney general's office has investigated Dish.

In 2009, Washington and 45 other states scrutinized the TV provider for "deceptive" and "unfair" sales. The company agreed to pay $6 million to the states."
 

TheKrell

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Jan 4, 2007
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I fail to see why this is unfair to the state or to customers in the state. Their representatives taxed Dish. Why can't Dish add a below-the-line fee to state customers? :confused: It almost sounds as though Washington state wants Dish to increase the cost of it's programming packages so that they can get everybody in the country to pay Washington state taxes.
 

MikeD-C05

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How about TEXAS? We are paying the .62 cent state recovery FEE for the last couple of years. I'm surprised that Perry hasn't screamed about unfair Taxation at the top of his lungs.;)
 

Scherrman

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I see no problem with Dish charging that fee but they did not handle it properly. You can't just add a new charge to certain customers and not tell them. All they had to do was put a note on the customer's bill describing the reason for the extra dollar.
 

bellevuecoug

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Aug 14, 2013
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Sooooooooooo, anyone know where this supposed "sign up" is? I'm a Washington State customer and would not mind a few PPV certificates but the CSR knew nothing about this settlement or the Dish response (shocker).
 

navychop

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Perhaps Dish will now make such charges clear nationwide.


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Claude Greiner

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Sooooooooooo, anyone know where this supposed "sign up" is? I'm a Washington State customer and would not mind a few PPV certificates but the CSR knew nothing about this settlement or the Dish response (shocker).

I think sign up was referring to the customers who already cancelled.

Basically saying if they re-subscribe to Dish they can redeem their $10 in programming credits and 2 free PPV coupons.
 

Teehar

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They re-worded the tax here in NC this year.I would guess it has to do with this settlement?
 

HDRoberts

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May 13, 2008
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I see no problem with Dish charging that fee but they did not handle it properly. You can't just add a new charge to certain customers and not tell them. All they had to do was put a note on the customer's bill describing the reason for the extra dollar.

From the article, it sounds like they did. Washington is pissed they didn't include it in the base package cost.

Any Washington customers have a bill to show?
 

mikew

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So they should really piss off Washington by increasing the rates by $1.00, then issuing the entire country (except Washington) a $1.00 non-Washington resident credit...
 

R0ss

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Nov 14, 2009
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Look again at the first post there is a line in there that says Dish never mentioned the fee to customers when quoting the price of service, seems that May have been the straw that broke the camels back? Of course if this is the way the laws are going to go does that mean telecom companies have to list all the fees they add on to our bill, close to 10% of my combined wired, wireless and DSL bill from Verizon is various fed, state, and other fees, which of course we aren't informed about when we sign up, and even if you ask, which I did once (just for kicks)the sales people have no clue.

Ross


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harshness

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May 5, 2007
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I see no problem with Dish charging that fee but they did not handle it properly. You can't just add a new charge to certain customers and not tell them. All they had to do was put a note on the customer's bill describing the reason for the extra dollar.
Passing on regulatory fees and taxes as such is common practice. Some services (especially small wireless phone services) make a lot of noise about the fact that such things are included in the price and that's because it isn't usually handled that way.
 

harshness

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May 5, 2007
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From the article, it sounds like they did. Washington is pissed they didn't include it in the base package cost.
I would imagine that some politician's "honor" is at stake because they promised that there would be no financial impact on customers as a result of the new tax.

Washington is becoming a tax hell. They even tax freight charges!
 

dishdude

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I would imagine that some politician's "honor" is at stake because they promised that there would be no financial impact on customers as a result of the new tax.

Washington is becoming a tax hell. They even tax freight charges!

No state income tax!
 

mike123abc

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So they should really piss off Washington by increasing the rates by $1.00, then issuing the entire country (except Washington) a $1.00 non-Washington resident credit...

It would be an interesting gimmik... State discount for low taxes.
 

Tampa8

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Seems clear in the State of Washington you can't add a fee or tax to recoup the cost of doing business. So no question DISH was wrong, but could have charged that amount if they wanted to by making the packages higher. In the very first report I saw on this DISH did notify customers inside the mailing with their bills.

Keep in mind they way they did may be allowed you your State.
 

kenskibum

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Jan 21, 2008
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Lopez Island WA
Here's a bill with the surcharge from May 2012. I don't remember getting any explanation from Dish at the time.
May 2012 bill.jpg
 

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