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December 13, 2005

DirecTV Pays Fines in Two Separate Cases

The Washington Post is reporting that the FTC has settled its case against DirecTV for telemarketer abuse with a $5.3 million dollar fine.  Apparently, telemarketing firms hired by the satellite service made cold calls to consumers who were on the Do Not Call Registry.  That is a no-no for the FTC which enforces rules for contacting consumers.  The complaint was filed in federal court in Los Angeles.

From the FTC press release:

The complaint alleges that telemarketers calling on behalf of DIRECTV contacted consumers on the National DNC Registry. In addition, the complaint alleges that one of the telemarketers – Global Satellite, directly or through another entity – abandoned calls to consumers by failing to put a live sales representative on the line within two seconds after the called consumer completes his or her greeting, as required under the law.

Finally, the complaint alleges that DIRECTV provided substantial assistance and support to Global Satellite, even though it knew or consciously avoided knowing, that Global Satellite was violating the TSR.

The press release page has links to related documents in the case.

DirecTV settled another case for $5 million.  That case involved deceptive marketing practices which included cancellation policies and fees.  Much of the terms of trials and other relationships with customers was hidden away in small print or written in deceptive terms.  Twenty-two states investigated the company's practices, including New York.  The settlement was announced on New York Attorney General Eliot Spitzer's web site.

Here's the report in the Boston Globe.

December 13, 2005 | Permalink


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