BBB Receives Thousands of Complaints About Satellite TV
Beware the fine print
Just about every business promises lower prices, more choices, and better service. Satellite TV providers are no different. Over the last three years, however, the Better Business Bureau has received 53,000 complaints about satellite TV services: approximately 39,000 for DirecTV and 13,000 for DISH Network. Most subscribers complained about surprise fees and confusing terms.
According to Alison Southwick, of the Council of Better Business Bureaus, “Early termination fees are a huge source of contention. If you’re not satisfied with the service or you can’t afford the cost after the introductory period, you can’t walk away, because you’re going to get charged hundreds of dollars. This just makes the unhappy customer even more upset.”
Satellite services use long-term contracts and early termination fees for the same reason wireless phone companies do: the practice allows them to provide expensive equipment and installation at a much lower upfront cost and "lock in" customers for a long period, more or less guaranteeing a steady revenue stream.
Other significant problems have also been reported, many regarding advertising and billing. Introductory offers give new customers a reduced monthly rate or free premium channels for a certain length of time, but prices revert to normal once the period ends. Some satellite subscribers claim that increases were much more than expected; others say they were charged for services previously advertised as free.
Because of all the complaints and how they are handled, the BBB gives DISH Network a C rating and DirectTV an F rating (as of September 3, 2010).
Both companies claim to provide excellent service.
DirecTV spokesman Darris Gringeri says, “Admittedly, we don’t get it right every time and when we find there’s an issue we try to remedy it as soon as possible. We’re working to fix these issues.”
“We appreciate the need to address customer concerns in an effective and timely manner," says DISH Network corporate communications manager Francie Bauer, "and we will continue to work with the BBB to respond to and resolve these issues as quickly as possible.”
