Satellite Marketer Agrees to Change Marketing Practices

Linx Satellite, Inc., of Provo Utah, is a reseller of both DISH Network and DirecTV services in the Midwest. But the company has run afoul of Iowa Attorney General Tom Miller, who charged the company broke consumer laws.

As a result of Miller's investigation, the company has agreed to change its marketing practices involving subscriptions and contracts with Iowa consumers. The investigation followed several formal complaints against Linx Satellite, in addition to numerous informal inquiries.

Miller alleges that Linx Satellite violated Iowa's Consumer Fraud Act by failing to comply with the Iowa Door-to-Door Sales Act.  The allegations include failing to provide any consumers or adequate notice of their three-day right to cancel a transaction.

While Linx Satellite disputes the Attorney General's allegations that it violated Iowa's Consumer Fraud Act by violating the Iowa Door-to-Door Sales Act, the company has entered into a signed agreement called an Assurance of Voluntary Compliance.  Under the agreement, Linx Satellite agrees to comply with the Iowa Door-to-Door Sales Act. 

Can't ignore complaints

The company also agrees that it will not make any deceptive or untrue representations to consumers.  In addition, Linx Satellite agrees to respond in a timely manner to any complaints from consumers or third parties on their behalf, including the Office of Attorney General. 

If the company fails to respond within ten days, consumers are entitled to a full cancellation of any contract as well as a full refund.  The company agreed that a violation of the settlement agreement is a violation of the Consumer Fraud Act, which could subject the company to civil penalties of up to $40,000 per violation.

The Iowa Door-to-Door Sales Act applies if a sale is for more than $25, if the sale is made at a location other than the seller's place of business, and if the goods or services will be used for personal, family or household purposes. Under the Act, Iowa consumers must be given written and oral notice that they have three business days to cancel a purchase, and they must be told the procedure for cancellation. 

"The Door-to-Door Sales Act protects Iowans who may make a snap decision based on a sudden sales pitch at their front door," Miller said.  "Iowa law gives you three business days to cancel this type of purchase and to receive a full refund for any unused product.  If a seller doesn't tell you of this right, as the law requires, and doesn't provide you two written notices of this right, tell them thanks, but no thanks."