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DirecTV Settles Do Not Call Charges

December 16, 2006

DirecTV • Billing Problems • Installation • Maintenance • Rebates • Sales Practices • Billing for "Adult" Shows • About those "Adult" Bills ... --- News • DirecTV Takes Disputed Fees Out of Customer Accounts, Suit Charges • Major League Baseball, Cable Operators Reach Agreement • Major League Baseball Extends TV Deadline • Senators Object to DirecTV Deal that Shuts Out Baseball Fans • DirecTV Settles Do Not Call Charges • DirecTV Telemarketers To Pay $75,000 Penalty • Fired DirecTV Contractors Say They Refused To Lie To Customers • Outbreak of DirecTV Porn Charges Hits Philadelphia • DirecTV Fined $5 Million for Do-Not-Call Violations • DirecTV Will Reform Ad Practices, Pay Millions in Refunds • DirecTV Abandons Satellite Internet Plans

The Federal Trade Commission has entered into court settlements with the final defendants charged with violating the Do Not Call (DNC) provisions of the Telemarketing Sales Rule (TSR) by calling consumers whose numbers were on the DNC Registry in an attempt to sell them DIRECTV satellite television subscriptions.

The orders require the defendants to pay a total of $100,000 in penalties and bar them from future TSR violations.

In December 2005, the Commission charged DIRECTV and other defendants that telemarketed on DIRECTV's behalf with violating the DNC Rule and the TSR by calling consumers, despite the fact that their numbers were on the National DNC Registry.

In settling the charges, DIRECTV paid $5.3 million, representing the largest-ever DNC penalty obtained by the Commission.

The final court orders settle the Commission's charges against the following defendants:
• D.R.D., Inc., also d/b/a Power Direct; Daniel R. Delfino, individually and as an officer of D.R.D.;
• Global Satellite, LLC., also d/b/a Mavcomm; William King, individually and as an officer of Global Satellite; and
• Michael Gleason, individually and as an officer of Global Satellite.

According to the Commission, the D.R.D. and Global Satellite defendants violated the Do Not Call provisions of the TSR by telemarketing DIRECTV subscriptions on behalf of DIRECTV to consumers whose numbers are on the National DNC Registry.

Global Satellite also violated the TSR by using pre-recorded telemarketing messages that resulted in abandoned calls. Under the TSR, each abandoned call is a violation of the Rule if not connected to a live operator within two seconds after the consumer answers.

The final judgments and orders against the D.R.D. and Global Satellite defendants contain both monetary penalties and conduct provisions. They require D.R.D. to pay a $35,000 civil penalty and impose a $653,013 civil penalty on the Global Satellite defendants.

King, who ran Global Satellite, will pay $65,000 of the $653,013 penalty, with the remainder suspended based on the Global Satellite defendants' inability to pay. However, the order provides that the full penalty will become due if the Global Satellite defendants are later found to have misrepresented their financial condition.

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