TRENTON
– Attorney General Peter C. Harvey
announced today that New Jersey has entered
into a settlement agreement with DIRECTV,
the California-based satellite dish television
programming provider, that resolves allegations
the company used deceptive advertising
practices and unfair service cancellation
policies.
Under terms of the multi-state Assurance
of Voluntary Compliance agreement, DIRECTV
has pledged to ensure that its advertising
will be accurate, and that any modifications
to an advertised offer will be clearly
and conspicuously noted. The company has
also agreed to take remedial action against
any individual retailer who fails to follow
this practice. The AVC agreement, which
has been signed onto by 21 other states,
also requires DIRECTV to make clear to
consumers what channels are available
for viewing, and by what procedure DIRECTV
will make programming and pricing changes.
In addition, when offering premium sports
packages to prospective customers, DIRECTV
is required to make clear that blackout
periods may apply, and that all games
advertised in the package may not be available.
Previously, DIRECTV customers have complained
about encountering small, nearly illegible
print in advertisements pertaining to
modifications in DIRECTV offers. Consumers
have also complained, among other things,
about not learning the exact extent of
their financial commitment to the El-Segundo-based
DIRECTV until after being locked into
a contract. As part of a $5 million national
settlement, DIRECTV has agreed to pay
restitution to consumers who apparently
were charged a fee for not activating
DIRECTV in a “timely” fashion,
who complained because they paid for,
but did not receive, all local channels
they anticipated receiving, and who were
assessed a fee for terminating service
before DIRECTV’s “free programming
offer” period expired.
“This
is an important agreement for New Jersey
consumers,” said Attorney General
Harvey. “Businesses have an obligation
to deliver what they promise to deliver.
Likewise, consumers have a right to be
provided with accurate, clearly stated
terms of service when deciding whether
to entrust a particular company with their
hard-earned money. This agreement addresses
both of those concerns.”
Other states that have signed onto the
agreement with DIRECTV include Tennessee,
which acted as lead state for the multi-state
group, and: Delaware, Florida, Georgia,
Idaho, Illinois, Kansas, Maryland, Massachussetts,
Montana, Nebraska, Nevada, New York, North
Carolina, Ohio, Oregon, Pennsylvania,
Texas, Vermont and West Virginia.
According to Division of Consumer Affairs
Director Kimberly Ricketts, a multi-state
review group took a hard look at five
consumer complaint areas that had cropped
up with regularity throughout the nation.
Those complaints included that not all
programs advertised by DIRECTV were viewable,
not all sports programs advertised in
the “premium packages” were
available, not all local channels were
available as advertised, many viewers
had reported poor signal reception and,
therefore, a poor TV picture, and that
DIRECTV’s cancellation practices
were unfair.
"Businesses
certainly have the right to advertise
their products but they must deliver on
their promises," said Director Ricketts.
"Clearly disclosed contract terms
and conditions are just as important as
a clear television image. This agreement
ensures that DIRECTV customers really
will get what they think they are paying
for."
Harvey noted that the multi-state group
scoured hundreds of pages of documentation
provided by DIRECTV concerning company
advertisements, consumer complaints, and
employee training practices. According
to the Attorney General, the multi-state
group determined that DIRECTV’s
advertising was, in fact, misleading.
For example, he noted, many of DIRECTV’s
print ads made offers in large font, which
were then modified or negated in smaller
font at the bottom of the advertisement.
Consumers with complaints about the terms
contained in their contracts, problems
with installation, difficulties activating
or receiving programming, or termination
fees that were charged when they canceled
their service may be eligible to receive
restitution under the multi-state settlement.
To receive restitution, consumers must
either (1) have filed complaints in the
past with either the Attorney General
or DIRECTV concerning these issues or
(2) file complaints with the Attorney
General or DIRECTV by May 11, 2006. Consumers
who wish to file claims for restitution
should file a complaint with Attorney
General Harvey’s Division of Consumer
Affairs, or send to DIRECTV at: DIRECTV
Complaint Program, P.O. Box 29079, Glendale,
CA. 91209-907 . All complaints must
be received no later than May 11, 2006.