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FTC Sues DirecTV, Alleges Hidden Fees and Deceptive Ads

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In this May 6, 2010 file photo, a DirecTV satellite dish is attached to a roof at a home in Palo Alto, Calif. The government is taking the nation's biggest satellite TV provider to court, accusing DirecTV of misleading millions of consumers about the cost of its programming. The Federal Trade Commission said Wednesday that its complaint charges DirecTV Inc. with deceptively advertising a discounted 12-month programming package. Consumers weren't clearly told that the package requires a two-year contract, the commission said. (AP Photo/Paul Sakuma, File)

In this May 6, 2010 file photo, a DirecTV satellite dish is attached to a roof at a home in Palo Alto, Calif. The government is taking the nation’s biggest satellite TV provider to court, accusing DirecTV of misleading millions of consumers about the cost of its programming. (AP Photo/Paul Sakuma, File)

JENNIFER C. KERR, Associated Press

WASHINGTON (AP) — The government is taking the nation’s biggest satellite TV provider to court, accusing DirecTV of misleading millions of consumers about the cost of its programming.

The Federal Trade Commission said Wednesday that its complaint charges DirecTV Inc. with deceptively advertising a discounted 12-month programming package. Consumers weren’t clearly told that the package requires a two-year contract, the commission said.

The advertising, the FTC said, did not make clear that the cost of the package would increase by up to $45 more per month in the second year and that hefty early cancellation fees — up to $480 — would apply. The allegations of deceptive advertising date back to 2007 and cover more recent marketing campaigns, such as one in late 2014 that offered the company’s subscription service on a limited basis for “only $19.99” a month.

“We require businesses to be truthful and to give consumers the information they need to make informed choices about goods and services,” said Jessica Rich, head of the agency’s consumer protection bureau. “Companies can’t hide important information from consumers to trick them into buying goods and services — and that’s what we allege DirecTV did.”

DirecTV denied the charges.

The company says it’s made a number of improvements to make the ordering process as clear as possible, eliminated some promotions that may have been confusing to consumers, and prominently disclosed introductory pricing terms.

DirecTV said many customers shop online, but the vast majority place their order by phone. All the details about terms and conditions are verbally communicated during the phone call and customers are asked to acknowledge that they understand the terms, the company said.

The FTC’s Rich said the commission would seek refunds for consumers. She did not say exactly how many people were involved but said a large portion of the company’s more than 20 million U.S. subscribers were affected.

The FTC also took issue with DirecTV’s trial offers of premium channels, such as HBO and Cinemax. Consumers weren’t properly told that they would incur significant monthly fees if they didn’t cancel the trial offer before the three months were up, the FTC said.

California-based DirecTV has been in trouble with the FTC before. The company paid a $5.3 million settlement in 2005, and then a $2.3 million settlement in 2009 — both over telemarketing calls to consumers.

The FTC complaint over DirecTV’s marketing practices was filed in federal court in San Francisco.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Oakland Post: Week of February 5 – 11, 2025

The printed Weekly Edition of the Oakland Post: Week of February 5 – 11, 2025

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Oakland Post: Week of January 29 – February 4, 2025

The printed Weekly Edition of the Oakland Post: Week of January 29 – February 4, 2025

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Oakland Poll: Tell Us What You Think About the Cost of Groceries in Oakland

Food banks and grocery giveaways are a large part of the resources nonprofits in Oakland prioritize, particularly in areas like East and West Oakland where low-income families of color tend to reside. These neighborhoods are often labeled as “food deserts” or communities that have limited access to affordable and nutritious foods.

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Oakland Poll: Tell Us What You Think About the Cost of Groceries in Oakland
Oakland Poll: Tell Us What You Think About the Cost of Groceries in Oakland

By Magaly Muñoz

In 2023, the average spending on groceries increased by nearly $30 each month from the year before;people are spending over $500 a month to put food on the table.

Through previous reporting by the Post, we’ve learned that families in Oakland are depending more and more on free or low cost groceries from food banks because they can no longer afford the rising costs of food at the store.

Food banks and grocery giveaways are a large part of the resources nonprofits in Oakland prioritize, particularly in areas like East and West Oakland where low-income families of color tend to reside. These neighborhoods are often labeled as “food deserts” or communities that have limited access to affordable and nutritious foods.

We’ve recently spoken to families across these two areas of Oakland and have heard several stories that all point to one problem: food is expensive. Some individuals are spending upwards of $150 a week for themselves or double if they have teens or small children in the family.

We’ve also heard stories of people with chronic illnesses like diabetes and high blood pressure struggling to maintain their diets because they’re having a hard time affording the food that helps them stay healthy.

Do these experiences sound similar to what you or your family are dealing with every month? Are you struggling to afford your basic groceries every week? Do you depend on food banks to help you get by? Are there any chronic illnesses in your household that need to be managed by a special diet?

We want to hear about your experiences and ideas for solutions!

The Oakland Post is investigating food access in Oakland and how residents are surviving as the cost of living continues to increase. Your experiences will help shape our reporting and show local leaders the need to invest in our communities.

In order to get as much feedback as possible, we ask that you click this link to fill out a brief questionnaire or visit tinyurl.com/Oakland-Post-food-survey. You can also scan the QR code above to reach the survey. After you fill it out, please consider sharing the link with your friends and family in Oakland.

If you have questions, please reach out to our Oakland reporter Magaly Muñoz at mmunoz@postnewsgroup or text/call her at (510) 905-5286.

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