The National Advertising Division of the Council of Better Business Bureaus said today that it is referring advertising by EchoStar Communications Corp. to the Federal Trade Commission.
Time Warner Cable Inc. filed a complaint with the NAD charging false advertising claims about the Douglas County-based company’s high-definition programming package on its Dish Network satellite TV system. New York-based Time Warner also charged that premium programming was falsely advertised as free.
EchoStar’s outside ad agency, Fort Lauderdale, Fla.-based Elephant group, was also named in the charges.
EchoStar spokeswoman Kathie Gonzalez was unable to comment on the matter this afternoon.
The Elephant Group complied with request for information, but EchoStar didn’t, said NAD officials.
Last month the NAD made recommendations to the Elephant Group that it “significantly modify its marketing materials to provide consumers with clear and consistent information about pricing and services.”
The NAD is referring EchoStar to the FTC because of the company’s refusal to participate in the NAD process.
“The FTC has an enforcement authority that we don’t have,” said NAD spokeswoman Linda Bean. “Our goal is to examine the advertising claims and determine if the substantiation matches the claim.”
In 2005, the NAD opened 170 cases, referring 12 to government agencies, Bean said.
Staff writer Kimberly S. Johnson can be reached at 303-820-1088 or kjohnson@denverpost.com.
