Wisconsin AG Sues DirecTV on Consumer Issues

[Gregg Lengling]

This week, Wisconsin Attorney General Peg Lautenschlager filed a consumer protection lawsuit against DirecTV charging the satellite TV company with violating state telecommunications laws.

Specifically, Lautenschlager alleged DirecTV failed to disclose material terms of its customer agreement at or before the time a customer subscribes to the satellite TV service, and failing to notify customers of the right to cancel the subscription without incurring a cancellation charge or disconnect fee. The AG also alleged DirecTV proposed or entered into contracts with Wisconsin consumers that purport to waive consumer rights, including the right to pursue claims against DirecTV in Wisconsin courts.

The complaint, filed in Dane County Circuit Court in Madison, seeks to enjoin DirecTV from further violations of Wisconsin state law and recover refunds for DirecTV customers who suffered losses due to the violations, Lautenschlager said. The complaint also asks the court to impose civil forfeitures up to $10,000 for each past violation of state law.

A DirecTV spokesperson said the suit surprised the company, since it has been working with representatives of the attorney general's office to address concerns. "We disagree with the premise of the suit, since the material terms of our service are contained in advertising and point of sale materials, information provided at the time of installation, and the customer agreement itself is available to any consumer to review in its entirety via our website," the company said.

"DirecTV takes great care to ensure that all material terms and conditions concerning its service are fully disclosed to consumers prior to activation of any customer account," the company said. "DirecTV is a national service, and for that reason, Congress has broadly pre-empted local jurisdictions' authority to impose unique restrictions and requirements because a national service must be able to operate uniformly throughout the country."

DirecTV said it hopes to work with state officials to resolve their concerns while preserving uniformity in its service and operations. "We have already communicated with the state of Wisconsin to resolve this matter quickly," DirecTV said, "Both DirecTV and the attorney general agree that it would be in everyone's interest to work toward informal resolution of our disagreements as opposed to engaging in protracted litigation."