("=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