subject: DirecTV Fined $14 Million for Violating Consumer Practices [print this page] DirecTV Fined $14 Million for Violating Consumer Practices
It seems that the reputation of DirecTV really is not doing too well among its customers. In a recent development reported by many news websites, DirecTV has been asked to shell out a whopping $14.25 million to 50 states in the US! If you are wondering why, read on.
An extensive investigative study lasting two years showed that the popular satellite provider had consistently broken standard consumer practices and cheated customers with concealed charges and dubious offers. The incident highlights the extent to which satellite providers can go to make profits. Apparently, DirecTV does not mind going the unethical route to amass profits. It was already known to customers of DirecTV that the satellite provider would get quite desperate to retain them if they intended to switch to a competitor and would come up with massive discounts and rebates which were mere eyewash.
According to the Attorney General Richard Blumenthal, DirecTV has repeatedly been harassing its customers by luring them with attractive discounts and rebates, which were actually too good to be true. What DirecTV did not tell them is that there were plenty of hidden charges that the customers did not have even the slightest idea about.
Customers across 50 states, numbering in thousands, have filed several complaints against DirecTV. Most of these complaints are about the significant cancellation fees that DirecTV demands, the dubious commercials and promises that it makes, and the sports packages which the provider flaunts about. The customers reported they were extremely distraught with the unethical practices that the satellite provider was indulging in and wanted to switch to another provider.
However, DirecTV says that the media has overhyped the ruling. According to a DirecTV spokesman Darris Gringeri, the attorneys general has made a mountain out of a molehill and overhyped the announcement. He also added that his company was in the midst of putting into place most of these improvements before the attorneys general got to know of them.
DirecTV is just one among the many companies that have been subjected to investigation over their subscription policies. The ruling has had an adverse effect on the company's shares in NASDAQ. As a consequence of the ruling, the shares of DirecTV toppled by 1.4% to $39.67 on the NASDAQ. DirecTV has surely landed itself into hot water by resorting to unethical business practices. It remains to be seen if the ruling will make the satellite provider to rethink or revise its advertising campaigns.
The incident is not anything new for attorney generals or the American people. Something similar happened to search giant AOL Inc. in 2007 when it came under the scanner. An investigation revealed that the company had been making it notoriously difficult for its customers to close their accounts. The result was that the firm was asked to shell out $3 million to 48 states and the District of Columbia. Again, in the month of October this year, it was reported that legal officials across five states were investigating the strange billing practices of Sirius XM Radio Inc. long-lasting
