Dish Network LLC will pay 46 states a total of $5,991,000 as part of an assurance of voluntary compliance. The assurance stems from allegations by attorneys general from the participating states that Dish Network engaged in questionable advertising practices.
Dish Network denied any wrongdoing, and maintained it was signing the agreement “so that this matter may be resolved amicably without further cost or inconvenience to the states, their citizens or Dish Network,” according to the compliance agreement.
The agreement was reached with every state in the U.S. with the exceptions of California, Illinois, North Carolina and Ohio.
As part of their complaints, the AGs alleged, in part, that through third-party sales vendors Dish Network:
Failed to comply with federal, state and/or local laws regarding Telemarketing, including, but not limited to, those which prohibit calling Consumers who are on federal, state, or local do-not-call lists;
Committed unfair and deceptive trade practices in violation of the Consumer Protection Acts in connection with their offer, sale and leasing of Dish Network Goods and Dish Network Services by failing to adequately disclose material terms and conditions, including, but not limited to, the terms of their Agreemen1s, the limitations on the availability of programming, limitations on the use of satellite receivers, and limitations on the availability of rebates, credits and free offers;
Committed unfair and deceptive trade practices in violation of the Consumer Protection Acts by failing to disclose to Consumers that purchased or leased DISH Network Goods were previously used and/or refurbished;
Committed unfair and deceptive trade practices in violation of the Consumer Protection Acts by advertising prices without adequately disclosing the applicability of rebates and by making reference and comparison price offers when the goods or services that the Dish Network Goods and/or Dish Network Services were being compared to were materially different;
Committed unfair and deceptive trade practices in violation of the Consumer Protection Acts by electronically debiting Consumers' bank accounts and credit cards without providing consumers with adequate notice and without first obtaining adequate authorization from consumers.
Within the agreement, Dish Network denied each allegation. The company further asserted that it should not be held responsible for practices that may or may not have been done by third-party vendors.
The agreement also contained several covenants pertaining to Dish Networks advertising, including:
Any advertisement promoting the availability of Dish Network Services and/or Dish Network Goods, Dish Network shall clearly and conspicuously disclose any limitations on the availability of Dish Network Services;
In any advertisement promoting a benefit that requires any commitment or minimum term of service, Dish Network shall clearly and conspicuously disclose any commitment to a minimum term of service required to accept the offer and whether the offer is subject to payment of cancellation fees, termination fees, and any other fines, fees or penalties if consumers terminate an agreement prior to the expiration of the commitment period;
When advertising or offering local channels, if local channels are not or may not be available in all areas where the Advertisement is reasonably expected to appear, Dish Network shall clearly and conspicuously disclose in the Advertisement that all local channels may not be available;
When advertising or offering Dish Network premium sports packages, Dish Network shall clearly and conspicuously disclose in the advertisement that blackouts may apply or that all games may not be available.
Dish Network shall clearly and conspicuously disclose in all of its advertisements and other representations it makes to consumers that include the offer of a rebate, credit, or other discount, all ma1erial terms, limitations, and conditions associated with the offer and obtaining the benefit of the offer.
Dish Network shall not disclose the price for any Dish Network goods and/or Dish Network services less any rebate, credit, discount or other amount to Consumers unless Dish Network clearly and conspicuously discloses in any advertisements or representations any material qualifications or limitations for obtaining the rebate, credit, discoun1 or other amount.
Dish Network shall clearly and conspicuously disclose in all of its advertisements and other representations ìt makes to consumers concerning the offer of a free good or service all terms and conditions of the offer.
Dish Network shall comply with the Federal Trade Commission Guide Concerning Use of the Word "Free" and Similar Representations; and
Dish Network shall comply with all federal, state and local laws, rules and regulations regarding any free offers or other prize, gift, award and incentive promotions.
