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Agreement With States Reforms DIRECTV’s Sales Practices DIRECTV settles with 49 states to improve required disclosures; must provide customer restitution

AUSTIN – Texas Attorney General Greg Abbott and 48 state attorneys general today resolved their lengthy investigation into DIRECTV, a provider of satellite television services. Under today’s agreed final judgment, the California-based company must pay restitution to eligible DIRECTV customers as well as $13.5 million to the states. Along with Tennessee, Texas was a co-leader of the national investigation into DIRECTV. The District of Columbia also participated.
Under today’s judgment, DIRECTV must pay restitution to Texas customers who file service and contract complaints with the Attorney General’s Office between Jan. 1, 2007, and June 9, 2011. If DIRECTV’s proposed remedy does not satisfy the aggrieved customer, the company must inform the customer that a claims administrator is available to mediate the disagreement – and provide the customer with a mediation enrollment form.

Final judgment and permanent injunction against DIRECTV Inc.

The states’ agreement with the defendant requires that DIRECTV:
• Clearly disclose all material terms to customers;
• Replace leased equipment that is defective at no cost, except shipping;
• Not require a customer to enter into an additional contract when the customer is simply replacing defective equipment;
• Clearly disclose when customers are entering into a contract;
• Clearly notify customers before they are obligated to pay for a seasonal sports package;
• Disclose when local channels will not be available to its customers;
• Not misrepresent the availability of sports programming;
• Not misrepresent a bill credit as cash back to customers; and
• Clearly notify customers that they will be charged a cancellation or equipment fee at least 10 days before charging the fee.
Texans who believe they have been deceived by deceptive or fraudulent business practices may call the Office of the Attorney General’s toll-free complaint line at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov.

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