DIRECTV 2011 Annual Report Download - page 40

DIRECTV
non-discriminatory access to programming affiliated with DIRECTV. In relationship with marketers or retailers found in violation. Similarly, we have agreed
particular, we may be required to submit to ‘‘baseball style’’ arbitration if we with certain state attorneys general to comply with advertising disclosure
cannot arrive at terms for carriage of our regional sports network requirements and monitor compliance by independent retailers.
programming with an MVPD. We are also subject to state and federal rules and laws regarding information
•Potential Regulation of Set-Top Receivers. Cable operators are subject to a security. Most of these rules and laws apply to customer information that could be
wide variety of regulation of their set-top receivers, including a prohibition used to commit identity theft. Substantially all of the U.S. states and the District of
on ‘‘integrated’’ security and non-security functions. The FCC has exempted Columbia have enacted security breach notification laws. These laws generally
DTH satellite operators from such rules, but has been urged to eliminate require that a business give notice to its customers whose financial account
that exemption. Were it to do so, DIRECTV U.S. may be required to information has been disclosed because of a security breach.
redesign its set-top receivers and, conceivably, replace existing receivers. The In addition, aspects of DBS/DTH service remain regulated at the state and
FCC has adopted accessibility requirements, such as the pass-through or local level. For example, the FCC has promulgated rules prohibiting restrictions by
rendering of closed captioning and video description, and is considering local government agencies and private organizations on the placement of DBS
additional requirements which could require the redesign of DIRECTV’s receiving antennas. Local governments and homeowners associations, however, may
set-top receivers. The FCC is also considering a new regime under which all continue to regulate the placement of such antennas if necessary to accomplish a
MVPDs, including DIRECTV U.S, would be required to offer ‘‘All Vid clearly defined public safety objective or to preserve a recognized historic district,
interfaces’’ instead of its existing set-top box arrangements. Such interfaces and may also apply to the FCC for a waiver if there are other local concerns of a
would be designed according to government specifications to deliver special or unusual nature. In addition, a number of state and local governments
DIRECTV U.S. programming stream and related data for manipulation by have attempted to impose consumer protection, customer service and other types of
third-party electronic equipment. DIRECTV U.S. believes such a regulation on DBS operators. Also, while Congress has prohibited local taxation of
requirement would significantly hinder its ability to offer new and DBS service, state taxation is permissible, and many states have imposed such taxes,
innovative services, and could complicate its customer service efforts. and additional states have attempted to do so recently. Incident to conducting a
consumer directed business, we occasionally receive inquiries or complaints from
International Telecommunications Union Rules. We are required by
authorities such as state attorneys general and state consumer protection offices.
international rules to coordinate the use of the frequencies on our satellites with
These matters are generally resolved in the ordinary course of business, and
other satellite operators who may interfere with us or who may suffer interference
DIRECTV recently agreed to implement a restitution program for consumers who
from our operations.
send eligible complaints related to consumer protection practices.
Export Control Regulation. The delivery of satellites and related technical In Latin America, DIRECTV Latin America and its subsidiaries are subject to
information for the purpose of launch by foreign launch services providers is subject laws and regulations in each country in which we operate that govern many of the
to strict export control and prior approval requirements. same aspects of our operations as in the United States, such as landing rights for
Other Legal and Regulatory Requirements. DBS/DTH providers are subject satellites; spectrum, earth station and other licenses; must carry and other
to other federal and state regulatory requirements, such as telemarketing and requirements with respect to the channels we carry; and regulations governing
advertising rules, and subscriber privacy rules similar to those governing other telemarketing and customer service. Regulatory regimes in Latin America are
MVPDs. We have agreed with the Federal Trade Commission, or FTC, to generally less developed than in the United States, and the application of existing
(1) review and monitor compliance with telemarketing laws by any companies we laws and regulations to DBS/DTH providers is at times uncertain. In addition,
authorize to do telemarketing and by independent retailers, (2) investigate and there are certain areas where regulations in Latin America are stricter than in the
respond to complaints about alleged improper telemarketing and (3) terminate our United States, such as regarding labor and consumer protection laws. Foreign
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