BREAKING NEWS: DirecTV Settles with FTC on Telemarketing Claims

[JohnH]

http://www.skyreport.com/view.cfm?ReleaseID=1809

[cboylan3]

this one has a bit more to read about it:

http://money.cnn.com/2005/12/13/news/fortune500/ftc_directv/index.htm?cnn=yes

NEW YORK (CNN/Money.com) - Officials announced a $5.36 million settlement Tuesday with satellite TV provider DirecTV over alleged violations of the Do Not Call rule, the largest civil penalty ever obtained by the Federal Trade Commission in a consumer protection enforcement case. ..........

Majoras said the DirecTV case accounted for 1.4 million complaints, the single biggest category of do-not-call violations the commission has ever received.

[moonman]

Statement from D* concering it's agreement with the FTC link here:
http://phx.corporate-ir.net/phoenix.zhtml?c=127160&p=irol-newsArticle&ID=795387&highlight=
D*'s Privacy policy link:
http://www.directv.com/DTVAPP/glb/DoNotCallPolicy.jsp

[CrankyYankee]

DIRECTV PAYS $5.4 MILLION FINE FOR DO-NOT-CALL VIOLATIONS
Largest Such Fine Ever; FTC Says It Is Sending a Signal

December 13, 2005

By Ira Teinowitz

WASHINGTON (AdAge.com) -– In the largest fine levied under the federal do-not-call registry law, DirecTV today agreed to pay $5.4 million to settle Federal Trade Commission charges the satellite TV provider didn’t adequately supervise the contractors it used to sell its dishes.

The FTC said the fine was also the largest civil consumer penalty for violation of federal consumer laws. Based on the number of complaints, the FTC could have sought a larger penalty, but an agency spokesman said the amount is already 10 times greater than any other penalties related to the do-not-call law to date.

Second fine
For DirecTV, the fine is its second black eye in two days. The company yesterday settled for $5 million charges by attorneys general in 21 states that it misled consumers because its advertised programs were not always viewable or were blacked out; local channels it advertised as available weren’t; and that its cancellation policies were unfair.

Today’s FTC fine is significant not only in terms of its dollar size, but also because it represents a major move forward on do-not-call. The commission is sending the signal to marketers that they are responsible not only for their own direct marketing but also for direct marketing programs that benefit them.

FTC Chairman Deborah Platt Majoras said the action “drives home a simple point that what applies to sellers applies to all the players in the chain.”

Read more at...

http://adage.com/news.cms?newsId=47143#

[harsh]

I received an automated call last night from someone selling DirecTV. I am quite convinced that it was an agent of DirecTV (as in contracted with) using a different name but cannot prove it. The company name used was not one of the local retailers/installers, but you know the "we're in your area" claim. I've been on the no call list since inception.

[moonman]

I received an automated call last night from someone selling DirecTV. I am quite convinced that it was an agent of DirecTV (as in contracted with) using a different name but cannot prove it. The company name used was not one of the local retailers/installers, but you know the "we're in your area" claim. I've been on the no call list since inception.
Companies are required to "scrub" their lists on a regular basis..if you are
still getting these calls, file a complaint with the FTC........
https://www.donotcall.gov/Complain/ComplainCheck.aspx
:)

[HIPAR]

Sorry to hear they had to pay the fine. It means our bills will all increase.

--- CHAS

[harsh]

Sorry to hear they had to pay the fine. It means our bills will all increase.I'm sorry to hear that they either thought they wouldn't get caught, or that the law didn't apply to them.

[billpa]

Sorry to hear they had to pay the fine. It means our bills will all increase.

--- CHAS


Oh well. Don't do business with a company that believes laws don't apply to them.

[Newshawk]

Oh well. Don't do business with a company that believes laws don't apply to them.
D* won't. If you read the report, the fines were payed by D* due to the actions of either (a) companies that were hired by D* to represent them and overstepped their bounds or (b) independent retailers that were ethically challenged and are no longer D* authorized distributors.

[moonman]

According to the Washington Post, one of the reasons for the record
breaking fine...
Quote:According to the complaint, DirecTV helped one telemarketer, Global Satellite LLC, even though DirecTV knew that the marketer was violating the do-not-call rules. UNQUOTE

[cboylan3]

this wasn't just a settlement that DirecTV agreed to pay. It was ordered by the courts.

Date Filed # Docket Text
12/12/2005 1 COMPLAINT against Defendants Mark Harmon, Communication Concepts LLC, Jim Turner, American Communications of the Triad, Michael Gibson, Global Satellite LLC, William King, Michael Gleason, DirecTV Inc, DRD Inc, Daniel R Delfino, Nomrah Records. (Filing fee $ 250); filed by Plaintiff United States of America; lodged Stipulated Judgment re Permanent Injunction(3)(ln, ) (Entered: 12/15/2005)

12/14/2005 2 STIPULATED JUDGMENT and ORDER FOR PERMANENT INJUNCTION by Judge David O. Carter against Defendant DirecTV Inc: IT IS HEREBY ORDERED that, in connection with telemarketing DirecTV goods or services, DirecTV, whether acting directly or indirectly through Authorized Telemarketers, is hereby permanently restrained and enjoined from engaging in violations of the Telemarketing Sales Rule; IT IS FURTHER ORDERED that judgment of $5,335,000.00 is hereby entered against DirecTV as a civil penalty pursuant to section 5(m)(1)(A) of the Federal Trade Commission Act, 15 USC 45(m)(1)(A); IT IS FURTHER ORDERED that each party to this Order hereby agrees to bear its own costs and attorneys fees incurred with this action; IT IS FURTHER ORDERED that this Court shall retain jurisdiction(see document for further details); parties hereby consent to entry of the foregoing Order which shall constitute final judgment and Order in this matter; parties further stipulate and agree that entry of foregoing Order shall constitute a full, complete and final settlement of this action; (ln, ) (Entered: 12/16/2005)

12/14/2005 3 STIPULATED JUDGMENT and ORDER FOR PERMANENT INJUNCTION by Judge David O. Carter against Defendants Communication Concepts LLC, Jim Turner: IT IS HEREBY ORDERED that, in connection with telemarketing, Defendants and their Representatives are hereby permanently restrained and enjoined from engaging, causing other persons to engage in, or assisting other persons to engage in, violations of the Telemarketing Sales Rule; IT IS FURTHER ORDERED that: a) judgment of $205,000.00 is hereby entered against Communication Concepts, as a civil penalty pursuant to Section 5(m)(1)(A) of the Federal Trade Commission Act, 15 USC 45(m)(1)(A); based upon Defendant Communication Concepts sworn representations in financial statements, full payment for foregoing judgment is suspended except for $25,000; IT IS FURTHER ORDERED that each party to this Order hereby agrees to bear its own costs and attorneys fees incurred with this action; IT IS FURTHER ORDERED that this Court shall retain jurisdiction(see document for further details); parties hereby consent to entry of the foregoing Order which shall constitute final judgment and Order in this matter; parties further stipulate and agree that entry of foregoing Order shall constitute a full, complete and final settlement of this action(ln, ) Modified on 12/16/2005 (ln, ). (Entered: 12/16/2005)

12/14/2005 4 STIPULATED JUDGMENT and ORDER FOR PERMANENT INJUNCTION by Judge David O. Carter against Defendants American Communications of the Triad, Michael Gibson; IT IS HEREBY ORDERED that, in connection with telemarketing, Defendants and their Representatives are hereby permanently restrained and enjoined from engaging, causing other persons to engage in, or assisting other persons to engage in, violations of the Telemarketing Sales Rule; IT IS FURTHER ORDERED that: a) judgment of $746,300.00 is hereby entered against American Communications of the Triad, as a civil penalty pursuant to Section 5(m)(1)(A) of the Federal Trade Commission Act, 15 USC 45(m)(1)(A); based upon Defendant American Communications of the Triads sworn representations in financial statements, full payment for foregoing judgment is suspended except for $50,000; IT IS FURTHER ORDERED that each party to this Order hereby agrees to bear its own costs and attorneys fees incurred with this action; IT IS FURTHER ORDERED that this Court shall retain jurisdiction(see document for further details); parties hereby consent to entry of the foregoing Order which shall constitute final judgment and Order in this matter; parties further stipulate and agree that entry of foregoing Order shall constitute a full, complete and final settlement of this action;(ln, ) (Entered: 12/16/2005)