TRENTON
-- Attorney General Anne Milgram announced
today that New Jersey has entered into a multi-state
settlement agreement with satellite dish TV
provider DISH Network, LLC, that resolves
allegations the company engaged in deceptive
and unfair business practices in connection
with the marketing, promotion and sale of
DISH Network goods and services.
Under
terms of the settlement, the Colorado-based
DISH Network will pay 46 participating states
a total of $5,991,000. New Jersey is expected
to receive $125,000. The settlement also provides
for injunctive relief and business practices
that govern how DISH Network can market its
goods and services in the future
In
addition, DISH Network has agreed to pay restitution
to eligible consumers who filed complaints
with their state’s Attorney General,
or with DISH Network itself, between January
1, 2004 and July 9, 2009. Consumers who file
complaints with their state’s Attorney
General, DISH Network and/or the Better Business
Bureau over the next 150 days may also be
eligible for restitution, if the conduct occurred
within the past two years. Based in Englewood,
Colorado, DISH Network was formally known
as EchoStar Satellite LLC.
“This
is an important settlement for New Jersey
consumers,” said Attorney General
Milgram. “ It provides for restitution
to eligible DISH Network customers and requires
the company to fully disclose -- both in advertising
and written contracts – all terms of
service, equipment return policies, fees and
other important information. New Jersey consumers
deserve nothing less than accurate, reliable
information about the products they buy or
are considering buying.”
Among
other issues, the settlement announced today
resolves allegations that DISH Network failed
to disclose all terms and conditions of its
customer agreements -- including the availability
of rebates, credits and free offers –
and refused to accept responsibility for misrepresentations
by its third-party retailers and installers.
Other
allegations identified during the investigation
include that DISH Network:
-
charged customer credit cards and debited
bank accounts without providing adequate
notice and obtaining appropriate authorization;
-
failed to disclose that equipment sold or
leased to its customers was previously used
and/or refurbished;
-
portrayed favorable comparisons with competitors’
pricing offers when the goods or services
being compared were materially different.;
and
- made
telemarketing calls to consumers in violation
of do-not-call rules.
Among other things, the settlement provides
that DISH Network:
-
clearly and conspicuously disclose in any
advertisement any limitation on the availability
of DISH Network services and any minimum
term of service required to receive any
offer or benefit;
-
not sell to consumers any previously used
and/or refurbished goods unless this fact
is clearly and conspicuously disclosed prior
to sale;
-
in any advertisement, clearly and conspicuously
disclose any material terms, limitations
and conditions associated with obtaining
a rebate, credit or other discount and/or
offer of free goods or services; and
- require
its third-party retailers to advertise,
sell and/or install DISH Network goods and
services in compliance with terms of the
settlement.
Tennessee
led the multi-state investigation into DISH
Network’s business practices the investigation
began in June 2006. In addition to New Jersey
and Tennessee, the following states are participating
in the settlement: Alabama, Alaska, Arizona,
Arkansas, Colorado, Connecticut, Delaware,
Florida, Georgia, Hawaii, Idaho, Indiana,
Iowa, Kansas, Kentucky, Louisiana, Maine,
Maryland, Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Mexico, New York,
North Dakota, Oklahoma, Oregon, Pennsylvania,
Rhode Island, South Carolina, South Dakota,
Texas, Utah, Vermont, Virginia, Washington,
West Virginia, Wisconsin, and Wyoming.
Deputy
Attorney General Nicholas Kant, assigned to
the Consumer Fraud Prosecution Section within
the Division of Law, handled the DISH Network
matter on behalf of the state.
"Questions
regarding the refund process can be addressed
to: DISH Network, L.L.C., Dispute Resolution
Team, P.O. Box 9040, Littleton, CO 80120 or
by e-mail at CEO@dishnetwork.com
"
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