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DIRECTV Faces Termination Fees Suit
Early termination fees assessed by DIRECTV are facing a legal challenge.
On Wednesday, the law firm of Sprenger + Lang filed a class action lawsuit against DIRECTV in Superior Court for the County of Los Angeles challenging the company's imposition of early termination fees against customers. Among other things, the lawsuit alleges that early termination fees constitute illegal punitive damages on customers.
Also, the complaint said plaintiffs never agreed to a term commitment and were never told about the potential application of an early termination fee.
In a statement, DIRECTV said it has not seen the lawsuit, and cannot comment on specifics in the complaint. But the company said it carefully discloses to customers all relevant terms and conditions contained in their agreement with the DBS service.
Those conditions cover discounted or free equipment and installation offers, in which customers must remain with the service for a period of time - either 18 months or 24 months - depending on the type of equipment they lease. If they fail to keep that commitment, there is a cancellation fee, DIRECTV said.
"Customers are fully informed at each step in the process of becoming a DIRECTV customer, beginning with the customer service reps sales script … retailers are also required to disclose programming commitment terms, in confirmation letters that are sent to customers after the sale, and in equipment lease addendums signed by the customer at the point of installation," the company said. "Reminders are also included in the customer's monthly bill statements."
Early termination fees assessed by DIRECTV are facing a legal challenge.
On Wednesday, the law firm of Sprenger + Lang filed a class action lawsuit against DIRECTV in Superior Court for the County of Los Angeles challenging the company's imposition of early termination fees against customers. Among other things, the lawsuit alleges that early termination fees constitute illegal punitive damages on customers.
Also, the complaint said plaintiffs never agreed to a term commitment and were never told about the potential application of an early termination fee.
In a statement, DIRECTV said it has not seen the lawsuit, and cannot comment on specifics in the complaint. But the company said it carefully discloses to customers all relevant terms and conditions contained in their agreement with the DBS service.
Those conditions cover discounted or free equipment and installation offers, in which customers must remain with the service for a period of time - either 18 months or 24 months - depending on the type of equipment they lease. If they fail to keep that commitment, there is a cancellation fee, DIRECTV said.
"Customers are fully informed at each step in the process of becoming a DIRECTV customer, beginning with the customer service reps sales script … retailers are also required to disclose programming commitment terms, in confirmation letters that are sent to customers after the sale, and in equipment lease addendums signed by the customer at the point of installation," the company said. "Reminders are also included in the customer's monthly bill statements."
