FTC Takes DirecTV To Court Over Ads

WASHINGTON (AP) — The government is taking the nation’s biggest satellite TV provider to court, accusing DirecTV of misleading millions of consumers about the cost of its programming.

The Federal Trade Commission said Wednesday that its complaint charges DirecTV Inc. with deceptively advertising a discounted 12-month programming package. Consumers weren’t clearly told that the package requires a two-year contract, the commission said.

The FTC said the advertising also did not make clear that the cost of the package would increase by up to $45 more per month in the second year and that hefty early cancellation fees – up to $480 – would apply.

Phone calls to DirecTV seeking comment were not immediately returned.

In a statement, FTC Chairwoman Edith Ramirez said DirecTV “sought to lock customers into longer and more expensive contracts and premium packages that were not adequately disclosed. It’s a bedrock principle that the key terms of an offer to a consumer must be clear and conspicuous, not hidden in fine print.”

California-based DirecTV, which has more than 20 million subscribers, has been in trouble with the FTC before. The company paid a $5.3 million settlement in 2005, and then a $2.3 million settlement in 2009 – both over telemarketing calls to consumers.

The commission’s complaint over how DirecTV marketed its programming package to attract new customers was filed in federal court in San Francisco. The FTC is seeking a court order to permanently bar DirecTV from advertising in a misleading way. It also is seeking monetary damages that could be used to provide refunds to consumers who were affected.