FTC sues DirecTV, alleges ads deceptive
WASHINGTON – The government is taking the nation’s biggest satellite TV provider to court, accusing DirecTV of misleading millions of consumers about the cost of its programming.
The Federal Trade Commission said Wednesday its complaint charges DirecTV Inc. with deceptively advertising a discounted 12-month programming package. Consumers weren’t clearly told that the package requires a two-year contract, the commission said.
The advertising, the FTC said, did not make clear that the cost of the package would increase by up to $45 more per month in the second year and that hefty early cancellation fees – up to $480 – would apply. The allegations of deceptive advertising date back to 2007 and cover more recent marketing campaigns, such as one in late 2014 that offered the company’s subscription service on a limited basis for “only $19.99” a month.
DirecTV denied the charges.
Jessica Rich, head of the FTC’s consumer protection bureau, said the commission would seek refunds for consumers.
L.L. Bean coming to Pacific Northwest
FREEPORT, Maine – L.L. Bean, known for selling its trademark boots via catalog for more than a century, plans to make a bigger push into brick-and-mortar retail by more than tripling the number of domestic stores over the next five years, officials said Wednesday.
The Maine-based company, which is coming off five years of increasing revenue, will open four stores this year before accelerating growth with a goal of at least 100 by 2020, CEO Chris McCormick told workers in a memo.
The retail push will include L.L. Bean Inc.’s first West Coast presence with the opening of stores in the Pacific Northwest. Bean currently has 26 full-price retail stores, along with a handful of outlets, that stretch from the Northeast to Minnesota and Colorado.
Amazon to showcase inventions, products
Early adopters, take note: Amazon.com has launched a store section called Amazon Exclusives that features new innovations from up-and-coming brands.
The Seattle e-commerce company said customers can shop for a “unique range” of electronics, toys, sporting equipment and other products in the store, which will showcase brands from new inventors and some of the products seen on the TV show “Shark Tank.”
Many of the products featured on Amazon Exclusives have won innovation awards from industry associations, the company said.
Executives at businesses featured on Amazon Exclusives say it’s a win for everybody because it gives their little-known products a huge exposure boost while helping customers find the latest products they otherwise might not have known about.
PetSmart sale closes; new CEO appointed
NEW YORK – PetSmart said Wednesday that it has been taken private, as a group of investors led by the buyout firm BC Partners completed their $8.7 billion acquisition of the pet store retailer.
PetSmart President and CEO David Lenhart and Chairman Gregory Josefowicz are stepping down as part of the deal. Michael Massey is being named president and CEO, and Raymond Svider is the new non-executive chairman. Massey is the former CEO of Collective Brands Inc., which owns Payless ShoeSource, and Svider is managing partner at BC Partners.