Dish Network Corp. said today it agreed to pay nearly $6 million to settle charges that it improperly marketed, promoted and sold its products and services. Although the satellite TV provider isn’t admitting any wrongdoing in settling with attorneys generals in 46 states, including Louisiana, it agreed to pay restitution to affected customers and make fuller disclosures in advertising and written contracts. State officials say Dish Network failed to disclose all the terms of service to customers, including rebates, credits and free offers. The states say that Dish refused to take responsibility when customers were misled by service resellers and equipment installers.
State officials also accused Dish Network of charging customers’ credit cards and withdrawing money from bank accounts without giving adequate notice and getting proper authorization. They also said Dish Network didn’t tell customers that equipment sold or leased were used or refurbished. As part of the settlement, Dish Network agreed to more clearly disclose in ads any restrictions on promotional offers. It also promised to either sell new equipment or tell consumers they’re buying used goods. The company also must require retailers that resell its services to comply with the terms of the states’ agreement.
Dish Network will pay restitution to affected consumers who filed complaints between Jan. 1, 2004 and July 9, 2009. People can also file complaints over the next five months with their state’s attorney general, Dish Network or Better Business Bureau to qualify, as long as the problem occurred within the past two years.
