Direct-to-home satellite television service provider DirecTV stands to pay out more than $10 million dollars in separate settlements reached with the U.S. Federal Trade Commission (FTC) and a group of 22 states.

The FTC announced Dec. 13 that DirecTV will pay $5.3 million to settle charges that since October 2003, DirecTV and companies it hired to promote its service have been violating the do-not-call provisions of the FTC’s Telemarketing Sales Rule.

The U.S. Department of Justice filed the complaint and stipulated settlements at the request of the FTC. The complaint, filed in U.S. District Court in Los Angeles, names DirecTV, five telemarketing firms and six principles of those firms as defendants and alleges that telemarketers calling on behalf of DirecTV contacted consumers on the do-not-call registry. The complaint also alleges that one of the firms, Global Satellite, abandoned calls to consumers by failing to put a live sales representative on the line within two seconds after the called consumer completes his or her greeting, as required under the law. Finally, the complaint alleges that DirecTV provided substantial assistance and support to Global Satellite, even though DirecTV knew or consciously avoided knowing, that Global Satellite was violating U.S. law.

The proposed settlement, if adopted by the court, would settle the agency’s complaint and end litigation against DirecTV.

Separately, attorneys general from 22 states reached a $5 million settlement that resolves claims that DirecTV advertisements and promotions violated laws and were not clear regarding additional charges, minimum commitment terms, local channels and sports packages. According to the Pennsylvania state attorney general’s office, the most prevalent complaint involved claims that DirecTV provided misleading information about the availability to receive local TV stations and failure to disclose that restrictions were placed on viewing certain major sporting events.

Under the terms of the settlement, DirecTV denies the states’ allegations but agrees to pay restitution to eligible consumers who file complaints before May 11 and also pay the states $5 million for investigation costs.

DirecTV also agreed that future marketing, selling and billing practices would avoid confusion about the terms and conditions of signing up for service and purchasing equipment. DirecTV also will supervise and monitor individual retailers to ensure compliance with the agreement, as well as send consumers, within 72 hours of equipment purchases, a letter clearly explaining all the terms of the transaction.

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