FTC accuses DirecTV of deceptive advertising

The Federal Trade Commission this week accused DirecTV of deceptively advertising a discounted year-long programming package.

According to the Washington Post, the FTC's complaint alleges DirecTV wasn't up front about several details:

• Consumers had to sign a two-year contract to get the 12-month deal.
• In the second year, the cost of the special deal increases by up to $45 per month.
• Early cancellation results in fees of up to $480 if consumers bail before the end of the two-year period.
• Consumers must proactively cancel an offer for free premium channels for three months to avoid automatic charges on their credit or debit cards.

DirecTV sought to lock customers into longer and more expensive contracts and premium packages that were not adequately disclosed,” said FTC Chairwoman Edith Ramirez. “It’s a bedrock principle that the key terms of an offer to a consumer must be clear and conspicuous, not hidden in fine print.”

DirecTV denied any wrongdoing.

Read more from the Washington Post.