DIRECTV TO PAY $13.5M TO SETTLE FALSE AD CLAIMS

Satellite operator DirecTV has agreed to pay each of the 50 states a total of $13.25 million to settle complaints by attorneys general in those states that it had run misleading advertising offering its service at low prices, failing to disclose price increases, and extending contracts without notifying customers. DirecTV denied any wrongdoing. Mike White, its chairman, president and CEO told the Los Angeles Times that he had agreed to settle the matter “because we are a high integrity company and we value our customer service reputation. And frankly, we wanted to get this matter behind us.” However, Connecticut, State Attorney General Richard Blumenthal stated: “DirecTV was anything but direct with consumers, conning them with confusing contracts, deceptive ads and misleading promotions.This was classic bait-and-switch, hooking consumers with phony discounts and then hitting them with hidden charges. Consumers thought they were getting a deal only to get clipped.”