Comcast Sues DirecTv for False Advertisement and Stealing Customers

In a move to fight their competitor, Comcast is suing DirecTv for false advertisement. “Comcast sues DirecTv, says false ads lure NFL fans” by Lianna B. Baker of Reuters.com reports that Wednesday Comcast filed their suit with the accusation that DirecTv is “misleading consumers by promising ‘free’ broadcasts of [NFL] games”.

The suit claims that DirecTv is recruiting prospective Comcast customers with promises of free NFL Sunday ticket games without “[disclosing] that the offer requires customers to sign up for two-year contracts that cost hundreds of dollars, with hefty fees for early termination”. Such advertising is “disparaging [Comcast’s] cable services” and Comcast calls the advertisement  “an outright lie” from a “serial false advertiser”. The lawsuit is asking for “alleged improper profits, as well as punitive damages and a halt to the ads”.

DirecTv gave a simple response stating that Comcast allegations are false and they will defend themselves.

According to Comcast, all DirecTv failed to do was disclose about having to sign up for a contract in order to get a promotion. Companies cannot give false information but we all know from our experiences, they can and do leave out information from major advertisements. This suit seems to be Comcast’s way of fighting a good advertisement that is working to steal customers, but it could bring more marketing oversight to the entire cable industry leaving Comcast with no industry supporters on their side. Consumers are going to have a hard time supporting Comcast because they (Comcast) have made it clear their focus is getting back expected lost profits and punishing DirecTv for gaining subscribers.

How exactly does Comcast quantify the amount of consumers they should have had? The assumption is any subscriber gained from the promotion was destined to become a Comcast subscriber, which is an arrogant assumption unless supported by hard facts. Comcast might just have to live with the reality that sometimes a competitor’s promotion works and Comcast should instead spend their money on their next big advertisement.