DirecTV reaches agreement with Attorney General Offices

[jcrandall]

In a rather vague press release today DirecTV announced they reached an agreement with all 50 states attorney generals offices.

That's about all it really says. There were some AG's looking into thinks like advertising and early term fees.

DirecTV says they will adjust some of their practices, hopefully we'll see positive change, like stop adding contracts just to add a receiver to an account. That has to be one of the biggest complaints, ten year customers should not be locked into a 2 year contract to add an HD receiver to their account

Here is the press release:

DIRECTV Reaches Agreements with State Attorneys General
What is this agreement about?
The specific issues identified in the Attorneys General agreements address DIRECTV's advertising and promotions, customer communications, service and agreements.
We are pleased that more than 99 percent of our customers are extremely happy with DIRECTV's service. But in a business where we serve more than 19 million customers and take more than 120 million phone calls a year, we recognize that we don't get it right every single time. We are moving forward with a continued dedication to delivering exceptional customer service as we strive to revolutionize home entertainment across all platforms.



How did it come about?
DIRECTV was contacted by a few states with some issues they wanted to address. We then welcomed the participation of as many states as possible to ensure that all of our customers are treated the same way. We were happy to formalize these improvements



What does this mean for me?
You won't notice much of a change since DIRECTV was already in the process of implementing the majority of these improvements when contacted by some of the states. As a national company we were happy to formalize these improvements in agreement with Attorneys General across all 50 states and D.C. We will, of course, continue to monitor the overall customer experience to ensure that we are serving the customer with best-in-class products and service.

DIRECTV: DIRECTV Reaches Agreements with State Attorneys General

 

[jcrandall]

Here is a good summary of what the AG's are upset about, this one from Washington state:

Washington Attorney General sues DIRECTV for

Size of font in advertisment (small print), $480 early termination fees ($20 @ 2 years), customers locked into contract without knowledge, etc.

Here are two big ones we see posted here every week:

CONTRACT EXTENSIONS: DIRECTV not only requires customers to agree to an extended contract at the beginning of service, but attempts to extend those terms even further. The company extends the length of contracts when customers require equipment repairs, upgrade equipment or move.

REBATE TERMS: In order to obtain a promotional rate, customers sometimes have to submit a rebate. Customers who submit the rebate form after installation may be charged full price for their service for up to two months. Those who fail to return the rebate within 60 days of an order are charged the full price indefinitely – even if DIRECTV failed to adequately inform them of the need to mail the form.

 

[raoul5788]

This agreement is probably a good thing, but I wouldn't be surprised to see higher equipment costs and fees.

 

[Joe Diamond]

I watched this one from the other end. There was a time when you could have DirecTV if you had $15.00 cash to give to the installer. PrimeStar customers, in some cases got a free installation, no contract and an occasional free AO. Then there was the $75.00 "refundable" deposit. Thousands just ordered and got FREE installations. And then Directv discovered the true cost of "churn".

Now they have gone nuts in the other direction! They are pissing off their friends, running off potential new users and looking stupid as they try to explain the mess.

At some point Directv might take another look at the true cost of a FREE installation. The day will come when nobody will work for the money offered. By then it won't make a difference.The customers will have moved to another technology.

Joe

 

[Voyager6]

Another story on the settlement from WalletPop. Consumer Complaints Against DIRECTV lead to $14 million Settlement

DIRECTV, one of the most complained-about companies in the country, has reached a settlement with all 50 states and the District of Columbia on a variety of consumer protection issues, including its notorious cancellation penalties.

The company has agreed to pay about $14 million and abide by a collection of rules of conduct for how it will treat its customers.


Curiously, the settlement comes almost exactly 5 years after a 22-state settlement was reached with DIRECTV over similar accusations. Complaints against the company have mounted in recent years, with more than 41,000 complaints processed just by the Better Business Bureau over the past three years.

The latest round of state actions started exactly one year ago when Washington's Attorney General sued DIRECTV. Washington Attorney General Rob McKenna's office said the 2,000 complaints against the company made it the single largest source of complaints.

http://srph.it/h5Tu1A
​

 

[TheKrell]

Good summary on DSLreports here: DirecTV Settles Suit Over Misleading Marketing - Hidden fees, covert contract extensions, and other fun | DSLReports.com, ISP Information

 

[jpmarto]

DIRECTV offering refunds amid accusations of unfair practices Nation's largest satellite TV service changing how it does Business

[FONT=&quot]There was an earlier link posted by lefatman,[/FONT]"Interesting article form MSNBC"[FONT=&quot]. I think it is more than interesting and probably should be viewed by anyone having problems with DirecTV.[/FONT][FONT=&quot] My dog in this hunt is that the Washington State AG is now looking into Sirius/XM, and with his track record, they'd better pay attention.[/FONT][FONT=&quot]


DIRECTV offering refunds amid accusations of unfair practices [/FONT] [FONT=&quot]Nation's largest satellite TV service changing how it does Business[/FONT]

[FONT=&quot]By Herb Weisbaum ConsumerMan [/FONT]
[FONT=&quot]msnbc.com contributor msnbc.com contributor [/FONT]
[FONT=&quot]2010-12-30T17:45:35 [/FONT]
[FONT=&quot]Many Happy Returns. Thousands of unhappy satellite TV customers around the country will get refunds in the New Year, courtesy of DIRECTV, the nation’s largest satellite TV service. [/FONT]
[FONT=&quot]DIRECTV also promises to change the way it does business. It took a lot of prodding for this to happen: A DIRECTV lawsuit filed by Washington State and a multi-state investigation led by the Attorney General in Tennessee. [/FONT]
[FONT=&quot]Two weeks ago, DIRECTV settled allegations (made by all 50 states and the District of Columbia) that since 2007 it used “deceptive and unfair” marketing practices. [/FONT]
[FONT=&quot]“At a time when people are trying to cut back on expenses, it is important that businesses clearly explain the terms of their service contracts,” said Tennessee Attorney General Robert Cooper in a statement. [/FONT]
[FONT=&quot]DIRECTV holds the dubious honor of having more consumer complaints (about 2,000) filed with the Washington State Attorney General’s office than any other company between 2006 and 2010. In its lawsuit, the state accused DIRECTV of “unconscionable” sales practices. [/FONT]
[FONT=&quot]“We believe that acting in ways that we found to be unfair and deceptive was part of their business model,” Washington AG Rob McKenna tells me. [/FONT]
[FONT=&quot]His lawsuit claimed pricing information “was not adequately disclosed” in the company’s ads or by its telephone sales representatives. [/FONT]
[FONT=&quot]For example, DIRECTV would advertise a monthly price of just $29.99, but didn't always make it clear that this low price was based on a rebate. Also, while the deal required a 2-year contract, the promotional price was good for only 12 months, something else that was often hidden in the fine print. [/FONT]
[FONT=&quot]“We had people complaining that they’d get bills for $50, $60 or $70 when they thought they were only going to be charged $29.99,” says Paula Selis, Washington State’s senior assistant attorney general, who handled the case. “And the company was pretty unwilling to work with people to straighten that out.” [/FONT]
[FONT=&quot]Major allegations
[/FONT][FONT=&quot]Here are some of the major allegations of unlawful behavior listed in court papers. [/FONT]

• [FONT=&quot]DIRECTV did not clearly disclose the true cost of the service and that the initial contract was for two years.[/FONT]
• [FONT=&quot]It did not make it clear that a sizeable early termination fee would be charged if the service was canceled before the two-year period ended.[/FONT]
• [FONT=&quot]It extended customers’ contracts without authorization when defective equipment was replaced. Misrepresented the availability of sports programming and did not clearly disclose that seasonal sports packages would automatically renew unless canceled.[/FONT]
• [FONT=&quot]It advertised “free” HD or DVR equipment, but charged $6 to $8 a month for this “upgraded” service. [/FONT]

[FONT=&quot]New way of doing business
[/FONT][FONT=&quot]DIRECTV has promised the courts it will change its business practices – institute new procedures and stop some previous practices – to ensure potential customers are well-informed about the terms of service and any promotional price or offer. [/FONT]
[FONT=&quot]In an email to msnbc.com, company spokesperson Darris Gringeri downplayed the significance of these settlements. [/FONT]
[FONT=&quot]“The fact is, we were implementing the majority of these improvements long before the AGs even brought this to our attention,” she writes. “When our customers let us know there are issues, we decide on our own to fix them, we don’t wait for the AGs to come to us. So while some AGs are grandstanding, we’d rather focus on the customer and move forward with giving them the best service possible.” [/FONT]
[FONT=&quot]While DIRECTV did not admit any wrongdoing, under the settlements it is legally bound to do a number of things. From now on, material terms such as the cost of service, contract length and cancelation penalties must be clearly disclosed next to the price in every advertisement [/FONT]
[FONT=&quot]DIRECTV’s ads are also required to clearly disclose whether a rebate is required to get the promotional price. If the first bill does not reflect the price agreed at the time of sale, DIRECTV must adjust the price or cancel the contract, if requested, without any penalty. If the price difference is because the customer did not properly apply for the rebate, DIRECTV must help with that. [/FONT]
[FONT=&quot]But the agreement covers much more than advertising. From now on DIRECTV: [/FONT]

• [FONT=&quot]Will not charge a cancelation fee if a customer ends services because of a recurring problem that cannot be fixed.[/FONT]
• [FONT=&quot]Cannot require a customer to enter into a new or extended contract when simply repairing or replacing defective equipment. A customer must knowingly agree to any contracts extension.[/FONT]
• [FONT=&quot]Will disclose any limitations to the availability of sports programming or local channels.[/FONT]
• [FONT=&quot]Give customers 30 days notice before any seasonal sports package is automatically renewed. [/FONT]

[FONT=&quot]Ad-itude adjustment [/FONT]
[FONT=&quot]
[/FONT][FONT=&quot]DIRECT TV says it is already adjusting its ads to give more prominent placement to specific details on offers. This includes placing phrases in direct proximity to the offer such as “after rebate,” “with 24 month agreement” and “fees apply” when applicable. [/FONT]
[FONT=&quot]Millions could be refunded to unhappy customers [/FONT]
[FONT=&quot]The settlement is good news for Jessica Twardzik of Seattle, who filed a complaint with the Washington State Attorney General’s office. She tells me she switched from cable to DIRECTV because their advertised prices were better. [/FONT]
[FONT=&quot]But after the satellite dish was installed, the signal kept going out and the repair people who came to her house could not fix the problem. After six weeks of intermittent TV service, she called the company to cancel. Twardzik says she was never told she had agreed to a two-year contract and that she would be hit with a whopping cancelation fee of $458. She refused to pay and was sent to collection. [/FONT]
[FONT=&quot]“It was the worst customer service I ever received in my life,” Twardzik says, “and I’ve worked in customer service my whole life.” [/FONT]
[FONT=&quot]DIRECTV has agreed to resolve complaints already filed about problems that took place after January 1, 2007. Unhappy customers are eligible for a refund or other relief. Those who have not formally complained have until June 9, 2011 to do so with their state attorney general or consumer protection office. For Washington state residents the deadline is May 31, 2011. If the company cannot resolve the complaint, the consumer can take their case to a claims administrator who will issue a decision. [/FONT]
[FONT=&quot]© 2010 msnbc.com.[/FONT]

 

[tomcrown1]

It seems dish tv is not the only one with hidden charges. Can dish be next?

 

[satjay]

DIRECTV did not clearly disclose the true cost of the service and that the initial contract was for two years.
It did not make it clear that a sizeable early termination fee would be charged if the service was canceled before the two-year period ended.
It extended customers’ contracts without authorization when defective equipment was replaced. Misrepresented the availability of sports programming and did not clearly disclose that seasonal sports packages would automatically renew unless canceled.
It advertised “free” HD or DVR equipment, but charged $6 to $8 a month for this “upgraded” service.
New way of doing business


I was nver surprised as I always read the "fine Print" and I must have been one of the lucky ones becouse when ever I did a upgrade the new contract was always discussed, though I knew from from previous service with Direct I knew that would come. Hopefully this will now move from fine print to BIGGER print and some will now be able to see it as well.

I guess kind of like warning coffee may be hot

 

[Hemi 6.1]

I agree, I think D* does some sneaky crap.

And I see nothing wrong with them getting forced to make changes.

CSR's are Ill informed, and I think thats where a lot of the issues lie.
You know how many times I've replaced defective receivers,, and had the CSR tell me a commitment is required upon activation?
That happends, and if you don't call them on it , your locked in!
I think it a sneaky practice, and I feel they are well aware they are doing it.
Its part of the game!

I'm fighting over any commitment from now on!
If I want to add a receiver, I'm not agreeing to any commitment.
I'll just keep dropping receivers then.

Your Signing a programming Commitment, Not and Equipment commitment.

 

[Jimbo]

I feel fine with the original 2 years commitment, however, any changes you make with them AFTER that should NOT have a commitment.

Replacing DEFECTIVE recvrs should NEVER trigger a commitment.

 

[kjlued]

Does Direct along with Dish and all the cable companies not always make it 100% clear all the charges?

Sure, but this does not warrant a lawsuit for customer stupidity either.

First off, I have never seen an ad that didn't reasonably explain that $29.99 is for 12 months on a 24 month service agreement. Then it further in the fine print explains the rebate.

Second, if you are to ignorant to read the fine print, then you could solve your problems with a few simple questions.

1) How much will my bill be?
2) Is that plus tax? If so, how much will my final bill be? (of course taxes are subject to change by the government and out of the service providers hands)
3) How much will my bill go up after the promotion.

As far as extending contracts for replacing defective equipment, why not?
They do this if they give you the equipment for free and you don't have service protection.
You are liable for the equipment if it breaks. If you don't want to extend your contract if this happens then either get the $5.99 service protection or buy the equipment when it happens.

 

[jpmarto]

It seems dish tv is not the only one with hidden charges. Can dish be next?

Actually, they were "before": DISH Network to dish out nearly $6 million under multistate settlement
DISH Network to dish out nearly $6 million under multistate settlement

 

[harshness]

The DIRECTV settlement with Washington alone was $1 million. IIRC, the bottom line on the recent DIRECTV proceedings was $13.25 million.

DirecTV Pays $13.25 Million Settlement for Misleading Advertising - The Hollywood Reporter

The DISH Network award was, in large part, over third party resellers. The DIRECTV dispute was over DIRECTV company policy and practices.

 

[1JoeSky]

Now if they could only straighten out the mess of loop holes between DTV, and VRZN, with all the back and forth for simple and seemingly simple problems.
i.e. lifetime HDTV, and auto pay.LOL:{

 

[jaimelatham]

DirecTV Fined $14 Million for Violating Consumer Practices

In a shocking revelation, it came under light that DirecTV violated consumer practices and was fined $14 million for that.It’s not exactly the same that you have expected from a renowned company like DirecTV.