Dish Network Fails to Disclose Fees, Class Action Says

Satellite television provider Dish Network Corp. fails to disclose key aspects of its service agreements, potentially subjecting customers to sizable fees, according to a class-action lawsuit filed in Colorado federal court.

Plaintiff Mary Thomas says new customers are not told they may be required to pay an early-cancellation fee of up to $240.

According to the complaint, filed in the U.S. District Court for the District of Colorado, several programming packages are available when a customer signs up for Dish Network service. The Englewood, Colo.-based company also provides the necessary equipment.

However, Dish Network sends the service agreement only after a customer receives the equipment and begins receiving satellite service, Thomas says. The agreement is a standard "adhesion" contract that denies customers the opportunity to negotiate its terms.

According to the complaint, buried in the fine print of the agreement is a provision stating that customers who cancel or downgrade service before the end of a 24-month term of service must pay a fee of $10 per canceled month or $240, whichever is greater.

Existing customers are subject to the same early-cancellation fees if they request additional equipment or a change in their programming package, Thomas says.

Dish Network imposes the fee regardless of the reason for cancellation, such as if a customer moves to a new address or is dissatisfied with the service. It also imposes the fee if the company itself cancels service, the suit says.

Dish Network fails to adequately disclose in its service agreement that customers are automatically enrolling in a 24-month commitment or that any change in service will result in the early-cancellation fee, the suit says.

The company has been unjustly enriched by its unfair and fraudulent practices, and its policies violate Colorado's consumer protection laws, the suit says.

Thomas seeks a declaration that the customer agreement is void and unenforceable. She also seeks damages and fees on behalf of the class.

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