DirecTV Pays $13.25 Million Settlement for Misleading Advertising
The satellite television company will shell out additional cash to customers who claim they signed up for contracts without fully understanding the costs.
DirecTV has agreed to pay state governments $13.25 million after attorney generals in all 50 states brought complaints against it for not fully explaining the cost of its contracts to subscribers.
The satellite television company will also reimburse customers, the Los Angeles Times reports.
State officials claimed the El Segundo-based company promised local channels and sports networks that they did not receive. DirecTV also advertised a promotional deal to receive their service for $29.99 a month, when the typical charge would be $53.99 or $63.99. Contracts were also extended without customer knowledge.
In the settlement, reached Wednesday, DirecTV did not acknowledge wrongdoing. It agreed to clarify contract terms and costs going forward.
DirecTV chief executive Mike White said, "We want to be clear, transparent and upfront with our customers in what these deals are when people sign up for our service. It was important that we resolve these issues because we are a high integrity company and we value our customer service reputation. And frankly, we wanted to get this matter behind us."
The L.A. Times reports that the California attorney general's office is reviewing 1,136 complaints. California residents have until June 9 to file a complaint at the attorney general's office office.