Connecticut Attorney General's Office

Press Release

Attorney General Announces Dish Network Agreement Providing Business Reforms and Restitution

July 16, 2009

Attorney General Richard Blumenthal today announced a $5.991 million multi-state agreement with DISH Network, LLC resolving allegations that it engaged in deceptive sales practices and harassing unwanted telemarketing calls.

The agreement involves 46 states altogether and provides $125,000 to Connecticut's General Fund. Blumenthal reached the agreement in coordination with Department of Consumer (DCP) Commissioner Jerry Farrell, Jr.

Connecticut and other states received thousands of consumer complaints against DISH Network, even after the company paid $5 million under a 2003 settlement involving consumer protection violations.

The DISH Network allegedly misled consumers about the level of programming offered; its terms of service and cancellation; limitations and conditions on rebates, credits and discounts; and unapproved automatic charges to credit and debit cards. DISH Network also allegedly made unwanted telemarketing calls, sometimes violating federal and state do-not-call lists.

Under today's agreement, DISH Network will provide clearer and conspicuous disclosures to consumers, restitution to certain consumers with unresolved complaints and an internal do-not-call list to avoid unwanted telemarketing calls to consumers not covered by the federal and state lists.

"This agreement stops the false claims, fine print and frustrating phone calls," Blumenthal said. "Reforms in business practices -- even more important than the money - reflect thousands of DISH Network consumer complaints about unwanted calls, unapproved charges and unsatisfactory service. Our coalition of states revealed a pattern of poor disclosure to consumers, and disregard for do-not-call lists.

"The DISH Network has cooperated with our multi-state coalition and recognized that its own success depends on respect for consumers -- restitution for unexpected charges, clear disclosures about terms of service, and efforts to avoid unwanted telemarketing calls.

"Today's agreement enhances our 2003 settlement with DISH Network, providing a stronger promise from the company and continued scrutiny. My office will closely monitor this agreement to ensure that it is honored, and consumer complaints resolved."

DISH Network will send claim forms to consumers with unresolved complaints (filed between Jan. 1, 2004 and today's agreement), enabling eligible consumers to seek possible restitution.

Today's agreement also requires that DISH Network:

• clearly disclose on a consumer's first statement that if the price or any portion of the statement is not what the consumer agreed to pay, then the company will honor the price the consumer agreed to or allow the consumer to cancel the agreement without any penalties or fees.

• obtain express authorization from consumers before enrolling them in any credit or debit auto-pay program.

• not impose unapproved automatic charges or debits for penalties or cancellation fees without notice.

• Reasonably discipline any third-party marketer that fails to comply with its policies, including this agreement.

• maintain a database of consumer complaints, including copies of correspondences, for at least three years and appoint one or more individuals responsible for resolving consumer complaints.

• not advertise prices post-rebate, unless it clearly discloses the qualifications or limitations for obtaining the rebate, credit or other discount.

• promptly replace any equipment that ceases to operate (not resulting from consumer fault).