United States - FTC Charges DIRECTV with Deceptively Advertising the Cost of Its Satellite Television Service

The FTC has charged DIRECTV, the United States’ largest provider of satellite television services, with deceptively advertising a discounted 12-month programming package.  According to the FTC complaint, DIRECTV, which serves 20 million subscribers in the United States, fails to disclose clearly that the package requires a two-year contract and that the cost of the package will increase by up to $45 per month in the second year.  The complaint also charges that DIRECTV fails to clearly disclose early cancellation fees of up to $480 and that its offer of free premium channels for three months is in fact a negative option continuity plan.The plan requires consumers to cancel to avoid automatic charges on their credit or debit cards.The FTC is seeking a court order to permanently bar DIRECTV from engaging in the allegedly illegal conduct, as well as a monetary judgment to provide refunds to affected consumers.In addition to charging DIRECTV with deceptive conduct violating Section 5 of the FTC Act, the FTC alleges the company violated the Restore Online Shoppers’ Confidence Act, known as ROSCA, by failing to clearly and conspicuously disclose on its website all of the material terms of offers with a negative option component for recurring charges.