A DISH Network Corp unit will pay $2 million and change national marketing practices to show it can raise prices at any time during the life of a contract, as a condition for ending a Colorado investigation, the state's attorney general's office said on Friday.
The settlement with DISH Network LLC comes several weeks after a federal judge in Illinois largely sided with the U.S. government and several states in a separate lawsuit accusing the satellite television provider of placing millions of illegal telemarketing calls to people who had signed up for the Do-Not-Call list.
The Colorado case dates back to 2011 after consumers complained about DISH price increases, saying sales agents had pledged that contract rates were "locked in."
Half of the penalty will go to Colorado's general fund and another $1 million will be used for "continued consumer protection efforts" by the Colorado attorney general, the office said in a news release.
In the separate federal case, U.S. District Judge Sue Myerscough said in a ruling filed on Dec. 12 that DISH had engaged in a "pattern or practice" of making calls for its products and services to consumers whose numbers were on the list.
The Federal Trade Commission sued the company in 2012 over the issue and is working with the Justice Department on the case.
A status conference in the federal case is scheduled for Jan. 9 and the size of any penalty is expected to be determined at trial.
In a statement, DISH said that, while it disagreed with Colorado's allegations, it appreciated the feedback and was pleased to have resolved the matter.
In the federal ruling, DISH said it disagreed with the bulk of the decision and had implemented rigorous telemarketing compliance policies.
