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DISH Network Settles Customer Sales, Deceptive Service Charges

Attorneys General from multiple states enforce consumer complaints

July 16, 2009

According to the states' enforcement action, customers complained that DISH Network disclaimed responsibility for the conduct of its third-party retailers and installers; advertised rebates without disclosing limitations on rebate offers; represented that equipment was new when, in fact, it was used or refurbished; and electronically debited customers’ bank accounts and credit cards without their authorization.

"Telecommunications companies ranked No. 1 on the Department of Justice's Top 10 Consumer Complaints 2008," said Oregon Attorney General Kroger. "For that reason, we have made telecommunications abuses one of our top consumer protection priorities."

"The evolving nature of telecommunications and merging of internet and entertainment services has left many Oregonians confused about who to turn to for help when they have billing or service quality issues" Oregon Public Utility Commission Chairman Lee Beyer said.

The settlement resolves the states' allegations including that DISH Network:

• Refused to accept responsibility for the misconduct of its third-party retailers and installers;

• Made telemarketing calls to consumers in violation of do-not-call rules;

• Failed to disclose all terms and conditions of their customer agreements, including the availability of rebates, credits and free offers;

• Did not disclose that purchased or leased equipment was previously used and/or refurbished;

• Made reference to competitors' price offers when the goods or services being compared were materially different; and

• Charged customer credit cards and debited bank accounts without providing adequate notice and obtaining appropriate authorization.

Dish will pay a total of $5.99 million in the 46-state settlement.

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