Dish, 46 states settle deceptive practices charges

ByABC News
July 16, 2009, 4:38 PM

— -- Dish Network said Thursday it agreed to pay nearly $6 million to settle charges that it improperly marketed, promoted and sold its products and services.

Although the satellite TV provider isn't admitting any wrongdoing in settling with attorneys generals in 46 states, it agreed to pay restitution to affected customers and make fuller disclosures in advertising and written contracts.

State officials say Dish failed to disclose all the terms of service to customers, including rebates, credits and free offers. The states say that Dish refused to take responsibility when customers were misled by service resellers and equipment installers.

State officials also accused Dish of charging customers' credit cards and withdrawing money from bank accounts without giving adequate notice and getting proper authorization. They also said Dish didn't tell customers that equipment sold or leased was used or refurbished.

As part of the settlement, Dish agreed to more clearly disclose in ads any restrictions on promotional offers. It also promised to either sell new equipment or tell consumers they're buying used goods. The company must also require retailers that resell its services to comply with the terms of the states' agreement.

Dish will pay restitution to affected consumers who filed complaints between Jan. 1, 2004 and July 9, 2009. People can also file complaints over the next five months with their state's attorney general, Dish or Better Business Bureau to qualify, as long as the problem occurred within the past two years.

Englewood, Colo.-based Dish reached a settlement with all states except California, North Carolina, Illinois and Ohio. Those four states did not accept the settlement terms and their legal claims against Dish are pending.