States Reach Agreement with Direct TV; Consumers Eligible for Restitution
Direct TV customers may be eligible for restitution under the terms of a $13.25 million national settlement filed yesterday in Oklahoma County District Court.
The settlement, between cable distributor Direct TV and the attorneys general for 50 states and the District of Columbia, resolves the states’ allegations that Direct TV misrepresented terms of service, costs and the company’s service cancellation policy in communications with their customers.
“We also alleged that Direct TV was locking customers into longer contracts when the company’s technicians made service calls that required them to replace Direct TV equipment,” Edmondson said. “Additionally, Direct TV did not inform customers that some of their sports programming packages would automatically be renewed and charged to the customer. We are pleased that the terms of the settlement require Direct TV to operate in a more transparent manner, and we believe Direct TV customers will see a benefit.”
Under the terms of yesterday’s agreement, Direct TV will be required to:
1. Clearly disclose all material terms to consumers;
2. Replace leased equipment that is defective at no cost except shipping costs;
3. Not require the consumer to enter into an additional contract when simply replacing defective equipment;
4. Clearly disclose when a consumer is entering into a contract;
5. Clearly notify consumers before a consumer is obligated to pay for a seasonal sports package;
6. Clearly disclose all limitations on the availability of local channels;
7. Not misrepresent the availability of sports programming;
8. Not represent that a consumer would get cash back if the consumer would actually get a bill credit; and
9. Clearly notify consumers that they will be charged a cancellation or equipment fee at least 10 days before charging the fee.
Consumers who believe they have been harmed by Direct TV’s practices from Jan. 2007 to present should call the attorney general’s office at (405) 521-2029.
Oklahoma will also receive $180,000 from the settlement to cover investigative costs associated with the settlement.
CPU Directv, Inc. Consent Judgment.pdf