Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: DISH Network settles Colorado rate misrepresentation claims for $2M, (Jan 5, 2015)

By Jody Coultas, J.D.

DISH Network L.L.C., a satellite-television provider, settled Colorado Consumer Protection Act claims filed by the Colorado Attorney General’s office regarding the companies’ sales practices.

In 2011, the Attorney General began investigating DISH’s sales practices after DISH increased its prices and numerous customers complained. Specifically, customers noted that DISH sales agents had represented that contract rates were “locked in,” “frozen,” and/or “guaranteed.” The Attorney General alleged that DISH’s oral sales scripts showed that the company discontinued its practice of disclosing that the “price is subject to change” during sales calls. Despite representations that rates were locked in for two years, DISH increased its prices during the second year of the customers’ contract by an average of $5.

DISH agreed to revise its sales disclosures nationwide to more accurately reflect that the company reserved the right to raise prices at any time. DISH will pay $2 million, of which $1 million will go to Colorado’s general fund and the remaining $1 million to the Colorado Attorney General’s Office custodial fund to be used for continued consumer protection efforts.

News: ConsumerProtection ColoradoNews