DirecTV, Dish Settle False Advertising Suit

DirecTV and Dish Network have decided "why fight more," at least on one matter. The satellite operators have settled a legal battle, where DirecTV alleged Dish was airing a deceptive "why pay more" campaign.

DirecTV filed the suit in federal court in New York in early February, charging Dish with running misleading spots claiming it offered the same programming at a better price. DirecTV wrote in court papers that Dish "flooded the airways with this false advertising."

Dish countersued, alleging that DirecTV was airing its own misleading advertising about HD channels. Spots in that effort featured David Spade, singer Christine Aguilera and James Lipton.

The settlement applies to both the suit and countersuit. Representatives for DirecTV and Dish declined to comment on terms.

DirecTV wrote in court papers that Dish spent about $1.07 million in the first three days of its campaign. That figure comes from a report from Video Monitoring Services that DirecTV provided.

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The ads in question included a comparison claiming that DirecTV charges $63.99 a month and Dish charges $39.99. But DirecTV said Dish was comparing different channel packages, which was not apples to apples.

Dish fired back that its ads make no claim of "identical" programming, just that the picture quality is the same, so "ESPN looks the same and covers the same games."

Dish's countersuit alleged that a DirecTV campaign for a $29.99 package falsely insinuated that HD channels come with it. Spade, Aguilera and Lipton appeared in separate spots in that initiative.

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