According to CNN iReport, the Federal Trade Commission (FTC) charged DirecTV Inc. for misleading consumers in the advertising of a 12 month discounted program package without properly informing them that the package required a two-year contract, the lawsuit said.
Additionally, the FTC says that their advertising never made it clear that the cost of the package increases to $ 45 per month in the second year and that the cancellation was subject to a $480 cancellation fee.
The complaint also alledges that DirecTV failed to mention that their promotion for free premium channels, like Showtime and HBO, would result in additional fees if consumers failed to cancel the premium channels before the free period was up.
Edith Ramirez, FTC chairwoman says “DirecTV sought to promote an affordable package but lock customers into a more expensive long-term contract and never adequately disclosed the all the fine print.”
DirecTV, based in California has more than 20 million subscribers, and this is not the first time they’ve fallen in hot water with the FTC.
In 2005 and 2009, the company paid $ 5.3 million to settle cases regarding telemarketing calls to consumers.