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DirectTV to Pay $5.4M in Privacy Fines

Posted by Zonk on from the privacy-isn't-a-fad dept.

abscissa writes "Remember the do-not-call registry? DirecTV is in big trouble for violating the list, and faces the largest civil assessment ever obtained of $5.4M for harassing people over the phone at home and ignoring the registry. Although it looks like DirecTV was outsourcing all their telemarketing (obviously), the FTC recieved 1.4 million complaints, the biggest category of do-not-call violations ever recieved." From the article: "Majoras was quick to emphasize that the most important part of the settlement is that it sends a warning to companies that they cannot hire telemarketers and then turn their backs on whether or not the rules are followed."

13 of 187 comments (clear)

  1. The First? by mysqlrocks · · Score: 3, Interesting

    Correct me if I'm wrong, but isn't this the first actual lawsuit for violating the Do-Not-Call Registry law?

    --
    Bradley Holt
  2. Drop in the Bucket by Maizdog · · Score: 5, Interesting

    Unfortunatly, it was probably worth it for them if they are only going to be fined $5.4M. That is a proverbial drop in the bucket that they will have made back by their tactics. The one hope, of course, is that there is some sort of brand name damage. Of course, I dont think consumers care quite enough to give up DirectTV so it is mostly a moot point.

    1. Re:Drop in the Bucket by sd_diamond · · Score: 5, Interesting

      Actually, I am considering cancelling my installation scheduled for this Friday.

      Do it. Immediately. And if you don't, take my advice: NEVER use their online payment service. DirecTV is, IMO, a criminal organization. Last year, they issued an unauthorized double-charge on my account (I had paid that month's bill electronically on their web site) to the tune of $300. My wife and I spent two weeks on the phone with them trying to get the money back. They kept assuring us that it was going to happen, but the date kept slipping back. Worse, they wouldn't even let us speak directly with their finance department -- only clueless customer "service" reps. I finally had to go to my Credit Union and issue a Stop Payment to get my money back. Bad service is one thing; stealing money is in another category altogether. I wish the aforementioned settlement had a few more zeroes on the end; I would like nothing more than to see these scumbags sued into oblivion.

  3. So the message is... by gid13 · · Score: 3, Interesting

    It costs less than $4 per COMPLAINT (not even per person) to advertise this way. I guess it's better than free, but is this really a harsh enough punishment to do anything?

  4. 1.4 million complaints about DirectTV!? by mindaktiviti · · Score: 4, Interesting

    "Majoras said the DirecTV case accounted for 1.4 million complaints, the single biggest category of do-not-call violations the commission has ever received."

    Good lord that's a huge number.

    United States -- Population: 295,734,134

    So roughly 1/200 people (not taking into account that each household is probably 2-6 people) in all of the US took the time out of their lives to look up the FCC's phone number and complain. Yeah. I'd say they deserve to get fined.

    1. Re:1.4 million complaints about DirectTV!? by metternich · · Score: 3, Interesting

      Fined? More like thrown in jail! Until CEOs start to personally suffer for the illegal actions of their companies, violating the law will simply be a business decision. (Expected Profit > Expected Penelty) -> Break Law.

      --
      Facts do not cease to exist because they are ignored.
    2. Re:1.4 million complaints about DirectTV!? by AndersOSU · · Score: 4, Interesting

      This is a terrible suggestion every time it comes up.

      Corporations are set up specifically to limit the liablility of the investors. It's management's and the board of director's responsibility to keep the company practices ethical and legal while maximizing share-holder value.

      Feel free to criticize the idea of a corporation, but you can't change the rules in the middle of the game. If you choose to criticize the corporation bear in mind how hard it would to start a company if every one who wanted to give you money was on the hook for corporate debts. Say for instance you are mislead into investing in Enron (hey it could happen) and the company goes under. Enron's creditors now come after your property to pay Enron's debts.

      Whenever money is at stake there will be abuses, and no system is perfect, but corporations help our economy more than hurt it. Now, if corporations could see value in something other than quarterly earnings, had to stand on their own merits, and not be propped up or bailed out by the government we'd be making progress.

    3. Re:1.4 million complaints about DirectTV!? by Pxtl · · Score: 2, Interesting

      Fine. End limited -legal- liability. Just not -fiscal- liability. Allow a judge to fine the shareholders directly. Thus, if a business is an abysmal failure, then the shareholders maintain their economic condom. Conversely, if a corporation behaves in a manner that could only be described as criminal and destructive, then a judge can hold accountable it's financiers.

  5. Numbers don't add up... by sholden · · Score: 3, Interesting
    Majoras said the DirecTV case accounted for 1.4 million complaints, the single biggest category of do-not-call violations the commission has ever received.

    and

    The investigation into the case took about two years, according to Majoras. Large numbers of complaints began rolling into the FTC in November 2003

    and

    And Majoras confirmed that as more phone numbers are added to the registry, the FTC receives more complaints, currently between 2,000 and 3,000 a day.


    2*365*3000 = 1.46 million

    Are they seriously saying that 96% of all complaints for a two year period were about DirecTV?!?
  6. Overseas calls? by kresjer · · Score: 4, Interesting
    The "Do Not Call Registry" states that
    33. Are telemarketing calls from overseas covered?

    Yes. Any telemarketers calling U.S. consumers are covered, regardless of where they are calling from. If a company within the U.S. solicits sales through an overseas professional telemarketer, that U.S. company may be liable for any violations by the telemarketer. The FTC can initiate enforcement actions against such companies.
    But I wonder how they are going to force that to an non-U.S. company?
  7. Re:1.4 million complaints by shotfeel · · Score: 2, Interesting

    I'm not sure if, or how you figured in two factors. One, that only a certain % of calls would be to people on the DNC list, and, two, what % of people on the DNC list who were called, actually filed a complaint.

    I also wonder how a telemarketing company that does that volume of business could accidently do this. It says in one case DirecTV supplied the list. Didn't the telemarketing company check it agaisnst the DNC list, or did DirecTV give them the list with the understanding that they had already filtered the list? In the cases where telemarketing companies were simply paid a commision (assuming they used their own list of numbers), I would think they would ultimately be responsible (and it sounds like they were held accountable).

  8. Devil's Advocate asks... by Anonymous Coward · · Score: 1, Interesting

    So who gets all this $$$. The Feds who never fielded a single call from the teledrones, or are the funds going to be distributed to those who were actually pestered by the calls?

    Justice is supposedly supposed to compensate those affected, not ignore them and enrich the system by collecting fines for itself.

  9. close by c0n0 · · Score: 2, Interesting

    Damn...for one reason or another I never get to test the anti-telemarketing Counterscript