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WW Defeats DirecTV’s Arbitration Clause
On February 8, 2008, WW filed a consumer class action in federal court against DirecTV, alleging that the company misleads customers into believing they own the satellite receivers they buy. DirecTV claims that its customers are only leasing the receivers and must pay a monthly lease fee for them. The case seeks, among other things, a ruling that DirecTV customers own their equipment, corrective disclosures, and a return of improperly charged lease fees.
Important Victory for Consumers. In response to the lawsuit, DirecTV filed a motion, arguing that the consumer claims must be arbitrated, rather than proceed in court, under a fine-print clause in their customer agreement. On May 9, 2008, after full briefing of the issue, the Court issued an order denying DirecTV’s motion to compel arbitration. In its order, which represents an important victory for consumers, the Court specifically found that the arbitration clause that DirecTV was attempting to enforce against its customers is “unenforceable because it included an unconscionable class action waiver.” DirecTV immediately appealed the ruling.
WW is proud to have achieved this victory which will hopefully pave the way for DirecTV customers to have their day in court.
Please check our website for future updates on the case. Of course, you may also contact us through our Online Form or call our Sacramento office at (916) 568-1100 for further information.
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