FTC accuses DirecTV of using deceptive advertising
In an awkward twist on AT&T's proposed purchase of DirecTV, now both companies are in hot water with the FTC. The Federal Trade Commission sued AT&T a few months ago over its data throttling, and today charged DirecTV with deceptive advertising -- an accusation DirecTV calls "flat-out wrong" and says it will fight. At issue are DirecTV's ads that prominently feature a discounted price that only applies for the first year of a two year contract -- in the second year, prices increase by $25 per month. DirecTV's promises of premium channels like HBO and Showtime are also cited, with the commission claiming they don't do enough to explain the channels cost extra after a trial period. The premium channel offer is set up as "negative option billing" (remember Columbia House?) and the FTC says DirecTV violated the Restore Online Shopper's Confidence Act (ROSCA) by not laying out the terms clearly on its website. Depending on how this goes, at least if DirecTV eventually needs any advice on how to restore trust with the public then it can just ask spokesman Rob Lowe.
DirecTV:
The FTC's decision is flat-out wrong and we will vigorously defend ourselves, for as long as it takes. We go above and beyond to ensure that every new customer receives all the information they need, multiple times, to make informed and intelligent decisions. For us to do anything less just doesn't make sense.
