News Release Header
For Immediate Release:
July 28, 2010

Media Contact:
Sonya M. Perez
soperez@miamidade.gov
305-375-4942



Miami-Dade Consumer Services files suit against DirecTV


(Miami-Dade County, FL) -- 
The Miami-Dade Consumer Services Department, represented by Consumer Advocate Leonard Elias, filed a lawsuit against DIRECTV on Tuesday, July 27 for engaging in deceptive practices related to the sale of their products and services. The lawsuit alleges that DIRECTV ran false and misleading advertisements about the cost of their service packages and equipment, and failed to properly disclose the terms of their contracts. The Consumer Services Department is seeking injunctive relief to prevent DIRECTV from further carrying out such activities, as well as restitution to any consumers found to be victims, civil penalties and reimbursement for fees and costs associated with the investigation.

Consumers submitted approximately 300 complaints about DIRECTV to the Consumer Services Department since July 2006. A review of the complaints revealed that DIRECTV advertisements did not state the complete price of their products and services and were phrased in a way to unfairly induce consumers to purchase DIRECTV packages. These advertisements led customers to believe they would pay as little as $34.99, $39.99 or $44.99 for various service bundles, when in fact, they were billed for $55.99, $60.99 and $65.99 respectively for those same deals.

In addition, DIRECTV did not clearly disclose conditions and limitations to their service agreements in advertisements or in any other type of communication with customers. The company buried additional fees in small-font text, which included a lease fee of $5.00 per month for a second and each additional receiver; a $19.95 fee for complex installation, handling and delivery; $6.00 per month for DVR Service; and $10.00 per month for HD Access. Offers of "FREE Professional Installation in Up to 4 Rooms" and "FREE HD DVR Receiver Upgrade" were not accompanied by conspicuously stated information about the fees. Moreover, consumers who believed they were signing a one-year contract based on advertisements that said, "LOCK IN YOUR PRICE FOR ONE FULL YEAR," were actually locked into a two-year contract. Advertisements also claimed "130+ Channels in Hi-Def" which includes local channels and exclusive sports packages. However, the fine print reads, "Eligibility for local channels based on service address. Programs not delivered in HD in all markets" and "Blackout restrictions and other conditions apply." These conditions did not clearly explain to the consumer, even those who purchased the most expensive package, that they would not be able to receive all the channels all the time.

DIRECTV is also accused of extending contracts without the express permission of customers. When various consumers, who had upgraded their equipment, elected to end their contracts when they expired, the consumers were told they could not do so without paying an early termination fee that could cost as much as $480.

The lawsuit was filed in the Circuit Court of the Eleventh Judicial Circuit. The defendants face 5 counts of violations of the Miami-Dade Uniform Trade Practices Law.

For more information on consumer issues, log on to the Consumer Services Department website at www.miamidade.gov/csd or call 305-375-3677.

About CSD
The Miami-Dade Consumer Services Department (CSD) investigates and mediates consumer complaints, enforces the County's consumer protection laws and business regulations, and licenses certain businesses.  In addition, the department's Cooperative Extension Division provides technical assistance to commercial agricultural growers, backyard gardeners, homeowners, and manages youth and family development programs.  The department also educates consumers on issues that affect them and provides resources to the public to improve their quality of life.

 

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CONSUMER SERVICES DEPARTMENT