("=DirecTV To Pay $13.3 Million To Settle Marketing Case," at 1:47 p.m. EST, misstated the first name of DirecTV's CEO, in the fifth paragraph. The correct version follows:)

 
 

DirecTV Group Inc. (DTV) has agreed to pay $13.3 million in civil penalties and costs to settle allegations that the satellite-TV service provider used misleading sales and marketing practices.

California Attorney General Edmund Brown alleged the company offered special deals that had hidden costs and extended customers' contracts without notifying them. The company also allegedly failed to deliver promised channels and changed the terms of some promotions.

Under the settlement, which also includes restitution to customers, DirecTV has agreed to change its sales and advertising practices, Brown said.

The company has 18 million subscribers in the U.S., including more than 1 million in California, according to the attorney general's office. The settlement covers complaints about the company's practices since January 2007.

In a statement Tuesday, DirecTV Chairman and Chief Executive Mike White said, "DirecTV has worked hand-in-hand with the attorneys general to formalize many of the customer improvements we have made over the past few years and are pleased to have come to this agreement."

DirecTV last month reported higher third-quarter earnings and added subscribers. Its results ran counter to cable providers, which have reported declines in video subscribers lately.

Shares of DirecTV were down 1.2% at $39.77 in recent trading.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com

 
 
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