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DirecTV, in Double Whammy, to Pay $10+ Million in Fines

Published on December 14, 2005 | Email this article
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The FTC has levied a fine 10 times greater than any other penalties related to the do-not-call law on DirecTV for charges that the satellite TV provider did not sufficiently oversee the contractors it used to sell its services, AdAge reports. The fine, at $5.4 million, could have been even larger, according to the FTC, based on the number of complaints it received about DirecTV.

 

The complaint, filed by the FTC, also names five telemarketing firms that made the sales calls on DirecTV’s behalf. The settlement is significant in that it shows that companies are responsible not only for their own telemarketing practices, but also for the practices of the independent contractors it hires.

On Monday, DirecTV also agreed to pay $5 million to New York and 21 other states, as well as restitution to consumers, in order to settle complaints that it misled consumers about its marketing practices, Mediapost writes.

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