Washington, D.C. (February 24, 2008) -- A law firm has filed a class action lawsuit against DIRECTV charging the satcaster with failing to tell customers they must eventually return their receivers -- even if they paid hundreds of dollars for them at retail.

The lawsuit, which was filed in federal court in Los Angeles by the Chicago-based Wexler Toriseva Wallace LLP, also includes CE retailer Best Buy.

The law firm says the companies have not "adequately disclosed" that a customer can not keep his DIRECTV receiver even after paying for it. At BestBuy.com, the  satcaster's receivers now range in price from $69 to $199, but DIRECTV has charged more for them since March 2006 when the leasing program began.

DIRECTV spokesman Robert Mercer told TVPredictions.com on Friday that "DIRECTV disputes (the) allegations regarding its lease program and intends to vigorously defend the lawsuit. We do not believe (the) claims have merit."


Mercer would not comment specifically on the allegations in the lawsuit.

DIRECTV considers the set-top purchase a "lease," for which it can also charge additional monthly lease fees, which have ranged from $4.99 to $10.

Like the lease agreement for an automobile, the DIRECTV lease requires the customer to return the receiver when the agreement expires, which is when the customer cancels service. (DIRECTV will provide an overnight delivery box and postage label for the receiver's return, but will not refund the original purchase price of the receiver.)

The satcaster's lease program begin on March 1, 2006, meaning any receiver purchased on or after that date must be returned.

"The lawsuit was filed on behalf of consumers nationwide, further alleging that consumers instead believe that they own the receivers they purchase from DIRECTV or its retailers, like Best Buy and Circuit City. Only later, according to the suit, do they discover that they must pay lease fees, and return their receivers if they cancel their DIRECTV subscription," Wexler Toriseva Wallace LLP said in a statement.

The lawsuit includes both High-Definition and standard-def receivers.

Mark J. Tamblyn, a partner in Wexler Toriseva Wallace's Sacramento office, said "consumers should be fully advised that their purchases of DIRECTV receivers come with strings. They should not have to discover after paying hundreds of dollars for a receiver that their purchase is more like a rental, requiring continuous payments."

The lawsuit seeks recovery of all lease fees paid, and a judgment declaring that DIRECTV lease is invalid.

The case, filed in Los Angeles, is Case No. CV08-00906 ABC (PJWx).

DIRECTV's web site states that "receivers are at all times property of DIRECTV and must be returned upon cancellation of service or additional fees may apply." However, at the web site and in retail agreements, the return policy is not prominently featured.

What happens if you don't return your DIRECTV receiver? Click here to find out.

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Swanni (Phillip Swann) is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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