{"id":219341,"date":"2009-12-18T06:00:00","date_gmt":"2009-12-18T11:00:00","guid":{"rendered":"tag:redtape.msnbc.com:\/\/35ec3af69f6afe93e86f87f4200b50e3"},"modified":"2009-12-18T06:00:00","modified_gmt":"2009-12-18T11:00:00","slug":"directv-thrives-on-deception-lawsuit-alleges","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/219341","title":{"rendered":"DirecTV thrives on ‘deception,’ lawsuit alleges"},"content":{"rendered":"

A lawsuit filed this week by Washington state against DirecTV could have a secondary purpose: It could serve as a textbook for consumers on tricks companies play to take their money.<\/o:p><\/span><\/font><\/span><\/p>\n

The suit filed by Washington Attorney General Rob McKenna alleges so many forms of misbehavior that he thinks DirecTV, the nation\u2019s largest satellite TV provider, has "built deception into their business model." In an interview with msnbc.com, he also said that the firm has "left few deceptive tactics unused."<\/o:p><\/span><\/font><\/span><\/p>\n

"It's amazing, the wide variety of ways they've taken advantage of their customers," he said.<\/span><\/font><\/span><\/p>\n

<\/o:p><\/span><\/font><\/span><\/p>\n

Much of the case centers on alleged misleading advertisements, and on a series of pricey early termination fees the firm levies on customers.  <\/span>For example: Aggressive marketing campaigns tout service for $29.99 per month, but leave less clear the two-year obligation attached to the deal,  <\/span>or that the price almost doubles after the first year, the lawsuit says. After the first year, consumers face a Hobson\u2019s choice \u2013 either pay the higher price or cough up an early-termination fee of up to $480.<\/o:p><\/span><\/font><\/span><\/p>\n

"It is what amounts to a bait-and-switch strategy,\u201d McKenna said. \u201cThey use a variety of lures to bring people in at prices the customer doesn't actually pay." <\/o:p><\/strong><\/span><\/font><\/span><\/p>\n

\"Logo_mini\"<\/a>But that's just the tip of the iceberg in the complaint, which accuses DirecTV of 16 different causes of action.<\/o:p><\/span><\/font><\/span><\/p>\n

Before filing the lawsuit on Monday, McKenna\u2019s office had received 375 consumer complaints about DirecTV this year — more than any other company. Another 59 complaints arrived in the 24 hours after the lawsuit was filed, he said.<\/o:p><\/span><\/font><\/span><\/p>\n

In a statement, DirecTV denied the accusations.<\/o:p><\/span><\/font><\/span><\/p>\n

\u201cWe always strive to provide 100 percent customer satisfaction but, to put it in perspective, we are talking about less than one percent of our customer base in the entire state," it said. "The vast majority of our customers in Washington, and the U.S. for that matter, understand our lease agreement and are happy with our overall service.  <\/span>We are disappointed that the state elected to file a lawsuit. We believe their allegations lack merit, and we are confident the court will agree with us.\u201d<\/o:p><\/span><\/font><\/span><\/p>\n

McKenna said he'd been working with DirecTV for months in an attempt to avoid a court battle, and he was surprised DirecTV refused to change its business practices voluntarily.<\/o:p><\/span><\/font><\/span><\/p>\n

Other state attorneys general are also considering suing DirecTV, he said, declining to identify them. Earlier this year, a group of 46 states settled a lawsuit with DirecTV competitor DISH Network. The firm was accused of automatically debiting consumers\u2019 accounts without their consent. The firm admitted no wrongdoing but agreed to change its business practices and refund $6 million to consumers.<\/o:p><\/span><\/font><\/span><\/p>\n

"When we go after a company, it's because we have them dead to rights," McKenna said.  <\/span>"Most companies just want to settle. … If DirecTV wants to take on the states, that's their choice."<\/o:p><\/span><\/font><\/span><\/p>\n

Here are a few of the other allegations from the complaint:<\/o:p><\/span><\/font><\/span><\/p>\n