DIRECTV Told to Reform Advertising

North Carolina last week joined 21 other states requiring DIRECTV to reform its advertising and to pay refunds to consumers.

The N.C. Attorneys General Office and other state attorneys general entered into an agreement with satellite television service and equipment provider DIRECTV, Inc. of El Segundo, Calif. to resolve charges that the company’s advertisements confused and misled consumers.

Viewers in North Carolina and across the country had complained about DIRECTV’s ads, particularly small unreadable print that changed the offer made in the ad’s larger print. Because of the confusing ads, many people who signed up with DIRECTV said they did not know what they would actually have to pay for the service until after they were locked into a contract. Consumers reported that DIRECTV charged them fees for not activating their satellite service by a certain time, or that they paid for but did not receive all local channels, or that DIRECTV charged them a fee for ending the service before the “free programming offer” period expired.

As part of the settlement, DIRECTV has agreed to pay refunds to consumers who have been charged disputed fees by the company since Jan. 1, 2001. North Carolina consumers who have complaints about the terms contained in their contracts, problems with installation, difficulties activating or receiving programming, or termination fees charged when they canceled service might be eligible for a refund under the settlement if they have filed a complaint with the attorney general’s office or with the company.

Consumers wishing to file complaints may call the consumer protection division at 1-877-566-7226, downloading a complaint form online at www.ncdoj.com, or writing to DIRECTV at: DIRECTV, State Complaint Program, PO Box 29079, Glendale, CA 91209-9079.

All complaints must be received no later than May 11, 2006. A total of 89 North Carolina consumers have complained about DIRECTV to the attorney general’s office since 2001, and many of the consumers have already received refunds.

The agreement between the states and DIRECTV also requires the company to change its ads so that they clearly inform consumers about the total cost of service and equipment. In addition, DIRECTV has agreed to pay the states $5 million. North Carolina, Delaware, Florida, Georgia, Idaho, Illinois, Kansas, Maryland, Massachusetts, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Vermont, and West Virginia participated in the investigation and agreement.