ImmerTech
07-27-04, 03:38 PM
I just received the following email from Orbit Communication Corp. I thought I would post it for comment:
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NOTICE TO {Name Removed} AND ALL ORBIT DIRECTV CUSTOMERS
Orbit has been a DIRECTV dealer since 1994. During the past decade, Orbit significantly and substantially contributed to helping DIRECTV achieve its current position of prominence in the satellite TV market. Orbit devoted so much time and effort to its relationship with DIRECTV that it reached the point where the relationship was essential to Orbit's survival. Over the past few years, Orbit has sold over forty five thousand DIRECTV receivers. Orbit customers activated more than twenty four thousand new subscription accounts for DIRECTV.
How did DIRECTV show its appreciation for this effort? DIRECTV would repeatedly bully Orbit by sending Orbit "termination notices" on one pretext or another, thereby threatening Orbit's survival. In those days, Orbit would have no alternative but to back down and do whatever DIRECTV demanded. Once Orbit backed down, DIRECTV would "rescind" the termination notice until the next time it wanted to bully Orbit. Orbit understands that this is a common tactic of DIRECTV against its dealers, distributors and their livelihoods.
Orbit was only able to sell DIRECTV receivers at a price significantly below Orbit's cost paid to DIRECTV because DIRECTV paid its dealers a rebate subsidy for each new unit activation. But this lead to another bullying tactic employed by DIRECTV. If a customer failed to maintain service for twelve continuous months, DIRECTV would charge back the amount of any subsidy already paid against Orbit's account. At the same time, DIRECTV would refuse to allow Orbit to charge the customer a cancellation fee thereby preventing Orbit from recouping from the customer the loss of the DIRECTV subsidy. This caused Orbit to lose an average of $250 in each such case. Then DIRECTV would go ahead and charge back the customer anyway, therefore double dipping.
Not long ago, due to excellent new offers from Dish Network and VOOM and in effort to stop putting all of its eggs in the DIRECTV basket, Orbit began to sell other competing satellite services from these two companies which offer better deals then DIRECTV. VOOM offers up to 4 rooms of HDTV Equipment with no upfront cost. And Dish Network Offering up to a 4 Room DVR unit with no upfront cost at a lower monthly cost then DIRECTV. There is nothing in Orbit's Sales Agency Agreement with DIRECTV which prevents Orbit from selling any other company's products.
Now, once again, DIRECTV has sent Orbit another termination letter. This time they claim that because other company's products are listed for sale on the same page as DIRECTV's products, Orbit is engaging in deceptive advertising. DIRECTV is making this claim in order to avoid its obligation to pay Orbit the commissions and residuals to which Orbit is entitled as a result of sales previously made.
Once again, DIRECTV seeks through intimidation to deprive Orbit of approximately $130,000.00 per year. If successful, DIRECTV will be unjustly enriched by approximately $130,000.00 per year.
THIS TIME, HOWEVER, ORBIT REFUSES TO BE INTIMIDATED OR SILENCED!
SPECIAL NOTE TO ORBIT CUSTOMERS: If you are an Orbit customer with a one year contract, please be advised that Orbit has destroyed your contract and DIRECTV does not have a copy of it. If you disconnect your service and DIRECTV tries to charge you back, they need to have a copy of your contract.
They do not. Simply dispute the charge and ask them to show you a copy of your contract. If they can't you are entitled to your money back. For its part, Orbit, the company you bought the equipment from, hereby releases you from any and all obligations under our Contract."
Orbit Communication Corp.
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NOTICE TO {Name Removed} AND ALL ORBIT DIRECTV CUSTOMERS
Orbit has been a DIRECTV dealer since 1994. During the past decade, Orbit significantly and substantially contributed to helping DIRECTV achieve its current position of prominence in the satellite TV market. Orbit devoted so much time and effort to its relationship with DIRECTV that it reached the point where the relationship was essential to Orbit's survival. Over the past few years, Orbit has sold over forty five thousand DIRECTV receivers. Orbit customers activated more than twenty four thousand new subscription accounts for DIRECTV.
How did DIRECTV show its appreciation for this effort? DIRECTV would repeatedly bully Orbit by sending Orbit "termination notices" on one pretext or another, thereby threatening Orbit's survival. In those days, Orbit would have no alternative but to back down and do whatever DIRECTV demanded. Once Orbit backed down, DIRECTV would "rescind" the termination notice until the next time it wanted to bully Orbit. Orbit understands that this is a common tactic of DIRECTV against its dealers, distributors and their livelihoods.
Orbit was only able to sell DIRECTV receivers at a price significantly below Orbit's cost paid to DIRECTV because DIRECTV paid its dealers a rebate subsidy for each new unit activation. But this lead to another bullying tactic employed by DIRECTV. If a customer failed to maintain service for twelve continuous months, DIRECTV would charge back the amount of any subsidy already paid against Orbit's account. At the same time, DIRECTV would refuse to allow Orbit to charge the customer a cancellation fee thereby preventing Orbit from recouping from the customer the loss of the DIRECTV subsidy. This caused Orbit to lose an average of $250 in each such case. Then DIRECTV would go ahead and charge back the customer anyway, therefore double dipping.
Not long ago, due to excellent new offers from Dish Network and VOOM and in effort to stop putting all of its eggs in the DIRECTV basket, Orbit began to sell other competing satellite services from these two companies which offer better deals then DIRECTV. VOOM offers up to 4 rooms of HDTV Equipment with no upfront cost. And Dish Network Offering up to a 4 Room DVR unit with no upfront cost at a lower monthly cost then DIRECTV. There is nothing in Orbit's Sales Agency Agreement with DIRECTV which prevents Orbit from selling any other company's products.
Now, once again, DIRECTV has sent Orbit another termination letter. This time they claim that because other company's products are listed for sale on the same page as DIRECTV's products, Orbit is engaging in deceptive advertising. DIRECTV is making this claim in order to avoid its obligation to pay Orbit the commissions and residuals to which Orbit is entitled as a result of sales previously made.
Once again, DIRECTV seeks through intimidation to deprive Orbit of approximately $130,000.00 per year. If successful, DIRECTV will be unjustly enriched by approximately $130,000.00 per year.
THIS TIME, HOWEVER, ORBIT REFUSES TO BE INTIMIDATED OR SILENCED!
SPECIAL NOTE TO ORBIT CUSTOMERS: If you are an Orbit customer with a one year contract, please be advised that Orbit has destroyed your contract and DIRECTV does not have a copy of it. If you disconnect your service and DIRECTV tries to charge you back, they need to have a copy of your contract.
They do not. Simply dispute the charge and ask them to show you a copy of your contract. If they can't you are entitled to your money back. For its part, Orbit, the company you bought the equipment from, hereby releases you from any and all obligations under our Contract."
Orbit Communication Corp.
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