DirecTV Shares Drop on $13 Million Settlement
NEW YORK (
) --
DirecTV
(DTV)
shares dropped today after it agreed to pay $13.25 million to 49 states and the District of Columbia in a settlement related to deceptive advertising.
Today, the U.S. satellite TV provider announced that it will reimbursement consumers across the nation who were injured by its misleading marketing practices.
According to the complaints filed by the consumers, the company failed to clearly disclose the price and length of the term that consumers would need to commit to in order to keep DirecTV services.
Other violations included deceptive promotional offers and undisclosed cancellation fees.
The settlement will require DirecTV to cease these deceptive practices and replace defective or broken equipment at no additional cost to shipping fees.
"DirecTV was anything but direct with consumers, conning them with confusing contracts, deceptive ads and misleading promotions," Connecticut Attorney General Richard Blumenthal said.
The settlement has come after a two-year investigation into consumer complaints that DirecTV was misleading its subscribers about its service fees.
Shares fell 1.5% to a closing price of $39.65 today after the announcement.
--Written by Theresa McCabe in Boston.
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