BOISE -- More than 5,000 Idaho consumers will be able to get the satellite television service they paid for under a settlement reached between DIRECTV Inc. and attorneys general in Idaho and 30 other states.
Attorney General Alan Lance said Wednesday that his office began investigating DIRECTV after receiving complaints from Idaho consumers who became dissatisfied with their service when the company dropped Encore movie channels from its lineup.
In Idaho, 5,247 consumers accepted DIRECTV's "$200 Cash Back Offer," Lance said. The offer required consumers to purchase a satellite system and prepay for a year of service. In return, they could choose either a $200 discount on the satellite system or free service for a year.
But Lance said that before all the prepaid subscriptions had expired, DIRECTV replaced the Encore movie channels with other channels. The Encore channels then were sold in a separate programming package at $4 per month.
"It seems to me that people are entitled to get what they bought," Lance said. "Fortunately, we were able to resolve this case amicably. In the rush of day-to-day business, advertisers may lose track of previous commitments to their customers. This case is a good reminder for other advertisers to review the promises they have made."
Under terms of the settlement, the attorney general said consumers who participated in the $200 cash back offer may opt to receive the Encore movie channels for free for the amount of time that was remaining on their subscription at the time DIRECTV made the programming changes last April.
Lance estimated the value of the settlement for Idaho consumers at $125,000. In addition, his office will receive $28,000 to cover investigation costs.
