The FTC just announced charges against DIRECTV (NASDAQ: DTV), the nation's largest provider of satellite television services, for deceptive advertising. Based in El Segundo,
California, and serving 20 million customers, the company failed to disclose that a discounted 12-month service required a two-year commitment. They are also accused of not telling customers about the $45+ price increase and the $480 early cancellation fee if they cancelled early.
DIRECTV misled consumers about the cost of its satellite television services and cancellation fees. DIRECTV sought to lock customers into longer and more expensive contracts and premium packages that were not adequately disclosed. It’s a bedrock principle that the key terms of an offer to a consumer must be clear and conspicuous, not hidden in fine print. - FTC Chairwoman Edith Ramirez.A court order has awarded a monetary judgement which will likely lead to refunds for harmed customers. DIRECTV is trading at $85.87 as of this writing, down $.26. Investors may sell-off more after the press call in 30 min.
To read the order click here.
To listen in to the Press Call dial-in as shown below:
| WHAT: | Press Call on Enforcement Action |
| WHEN: | 1:00 p.m. ET, Wednesday, March 11, 2015 |
| CONTACT: | The dial-in number for the call is 800-230-1092; the confirmation number is 355920. The lines will be open for calls beginning at 12:45 p.m. |
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