DES MOINES, Iowa (Legal Newsline) - Iowa Attorney General Tom Miller announced on Tuesday that he has reached an agreement with a Utah-based satellite television marketing company that allegedly violated Iowa's Consumer Fraud Act.
Linx Satellite Inc., of Provo, Utah, allegedly failed to comply with the Iowa Door-to-Door Sales Act by not providing consumers with adequate notice of their three-day right to cancel a transaction.
Although Linx admits no wrongdoing, they agreed to an assurance of voluntary compliance.
"The Door-to-Door Sales Act protects Iowans who may make a snap decision based on a sudden sales pitch at their front door," Miller said. "Iowa law gives you three business days to cancel this type of purchase and to receive a full refund for any unused product. If a seller doesn't tell you of this right, as the law requires, and doesn't provide you two written notices of this right, tell them thanks, but no thanks."
Under terms of the agreement, Linx has agreed to change its DISH Network and DirecTV marketing practices involving subscriptions and contracts with Iowa consumers.
The company also agreed to comply with the Iowa Door-to-Door Sales Act in all future actions and will stop making any deceptive or untrue representations to consumers. The company also agreed to respond to any complaints from consumers or third parties on their behalf in a timely manner.
If Linx fails to respond to a complaint within 10 days, consumers will be allowed a full cancellation of any contract as well as a full refund. If the company violates any part of its settlement agreement, it could be subject to civil penalties of up to $40,000 per violation.
The Iowa Door-to-Door Sales Act goes into effect if a sale is for more than $25, if the sale is made at a location other than the place of business of a seller, and if the goods or services will be used for personal, family or household purposes.
The act requires written and oral notice be provided to consumers notifying them that they have three business days to cancel a purchase. They must also be told the procedure for cancellation.