“The Federal Trade Commission sued DirecTV in federal court on Wednesday, claiming deceptive advertising by failing to adequately disclose price hikes in the second year of two-year pay-TV contracts and hundreds of dollars in early cancellation fees,” reports the Philadelphia Inquirer
The article reports: “The satellite TV operator also doesn’t clearly tell subscribers that they have to cancel premium channels when free promotion periods end or they will be charged for the channels, the government claimed in the suit filed in San Francisco.”
The chairperson of the FTC, Edith Ramirez, said in a statement: “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,” the story notes.
Charges for year two on a DirecTV contract could increase $45. And if one wanted to bail out of the service instead in year two, that could cost close to $500, the story says.