RiseStar
February 24th, 2008, 10:18 PM
A Chicago-based law firm has filed a class action lawsuit in Los Angeles federal court against Directv Inc., charging the satellite broadcaster with failing to adequately inform customers that they must return their Directv receivers upon cancellation of their Directv service, even if they paid hundreds of dollars for them at retail.
The suit, which also includes electronics retailer Best Buy, accuses the companies of not adequately disclosing that a customer cannot keep their Directv receiver after canceling their Directv service even though they paid for it, with prices now ranging from $69 to $199.
Directv considers the set top receiver purchase a “lease”, charging additional monthly lease fees which range from $4.99 to $10 per month. Previous to their lease program, which began on March 2006, customers were required to pay outright for their receivers. The leasing program allowed subscribers to get Directv with a lower upfront cost.
The downside however, is that the customers receiver remains the property of Directv and must be returned after cancellation of the Directv service. The original purchase price of the receiver is non-refundable.
"The lawsuit was filed on behalf of consumers nationwide, further alleging that consumers instead believe that they own the receivers they purchase from DIRECTV or its retailers, like Best Buy and Circuit City. Only later, according to the suit, do they discover that they must pay lease fees, and return their receivers if they cancel their DIRECTV subscription," Wexler Toriseva Wallace LLP said in a statement.
The lawsuit includes both High-Definition and standard-def receivers.
Mark J. Tamblyn, a partner in Wexler Toriseva Wallace's Sacramento office, said "consumers should be fully advised that their purchases of DIRECTV receivers come with strings. They should not have to discover after paying hundreds of dollars for a receiver that their purchase is more like a rental, requiring continuous payments."
The lawsuit seeks recovery of all lease fees paid, and a judgment declaring that DIRECTV lease is invalid.
The case, filed in Los Angeles, is Case No. CV08-00906 ABC (PJWx).
The suit, which also includes electronics retailer Best Buy, accuses the companies of not adequately disclosing that a customer cannot keep their Directv receiver after canceling their Directv service even though they paid for it, with prices now ranging from $69 to $199.
Directv considers the set top receiver purchase a “lease”, charging additional monthly lease fees which range from $4.99 to $10 per month. Previous to their lease program, which began on March 2006, customers were required to pay outright for their receivers. The leasing program allowed subscribers to get Directv with a lower upfront cost.
The downside however, is that the customers receiver remains the property of Directv and must be returned after cancellation of the Directv service. The original purchase price of the receiver is non-refundable.
"The lawsuit was filed on behalf of consumers nationwide, further alleging that consumers instead believe that they own the receivers they purchase from DIRECTV or its retailers, like Best Buy and Circuit City. Only later, according to the suit, do they discover that they must pay lease fees, and return their receivers if they cancel their DIRECTV subscription," Wexler Toriseva Wallace LLP said in a statement.
The lawsuit includes both High-Definition and standard-def receivers.
Mark J. Tamblyn, a partner in Wexler Toriseva Wallace's Sacramento office, said "consumers should be fully advised that their purchases of DIRECTV receivers come with strings. They should not have to discover after paying hundreds of dollars for a receiver that their purchase is more like a rental, requiring continuous payments."
The lawsuit seeks recovery of all lease fees paid, and a judgment declaring that DIRECTV lease is invalid.
The case, filed in Los Angeles, is Case No. CV08-00906 ABC (PJWx).