DirecTV used deceptive advertising to get consumers to agree to price increases of up to $45 per month and early cancellation fees of up to $480, the Federal Trade Commission alleged in a US District Court complaint today.

"The Federal Trade Commission has charged DirecTV, the country’s largest provider of satellite television services, with deceptively advertising a discounted 12-month programming package because it fails to clearly disclose that the package requires a two-year contract," the FTC said in an announcement. "In addition, DirecTV does not clearly disclose that the cost of the package will increase by up to $45 more per month in the second year, and that early cancellation fees of up to $480 apply if consumers cancel the package before the end of the two-year period."

The FTC is seeking a monetary judgment to provide refunds to consumers and a court order permanently barring DirecTV from engaging in the behavior, which allegedly violates the FTC Act by making deceptive claims and omitting important facts in advertisements and on its website. The FTC specifically alleges that:

DirecTV promotes its television service and programming package prices “for 12 months,” without clearly and prominently disclosing that these deals require consumers to sign a two-year contract (with a substantial early cancellation fee) and that the cost of the programming packages jumps $25 to $45 a month in the second year of the contract; and

DirecTV represents that consumers will receive premium channels, such as HBO and Showtime, “free for 3 months,” without adequately disclosing that: 1) consumers will be enrolled in a negative option continuity plan that charges for the premium channels after the trial period; 2) consumers must contact DirecTV to cancel the plan before the trial period ends to avoid incurring the charges; 3) DirecTV will use consumers’ credit or debit card information to charge them after the trial period ends; and 4) there are specific costs associated with the negative option continuity plan.

In a statement to Ars, DirecTV disagreed with the FTC's allegations. “The FTC’s decision is flat-out wrong and we will vigorously defend ourselves, for as long as it takes," DirecTV said. "We go above and beyond to ensure that every new customer receives all the information they need, multiple times, to make informed and intelligent decisions. For us to do anything less just doesn’t make sense.”