DirecTV, FTC Clash Over Payment of Third Parties' Legal Fees

The FTC is seeking a court order making DirecTV identify all parties for whom it has paid the legal costs for the agency's 2015 complaint in U.S. District Court in San Francisco on the direct broadcast satellite company's advertising practices (see 1503110042). In a filing Wednesday in the case, the FTC said DirecTV hasn't produced "numerous categories of requested materials in discovery," making the agency go to third parties doing business with DirecTV for the information. But the FTC said Dish's lawyers from Sidley Austin also represent many of those third parties, some of whom also are responding slowly if at all. "Determining whether DirecTV is paying for these nonparties' legal fees and costs will help the FTC, and ultimately the Court, assess the extent of DirecTV's influence over these witnesses, weigh bias and ensure orderly and transparent discovery," the agency said. In the same case, DirecTV disputed the FTC claims, saying the problem is that the agency "issued sweeping and over broad requests, requiring the responding parties and the FTC to engage in weekly meet and confer session to discuss how these requests could be narrowed and what documents will be produced." The FTC has received more than 468,000 separate records and documents from DirecTV and Sidley Austin-represented third parties, and more are coming, the satellite company said, saying the court shouldn't issue the order the agency seeks. It also said the commission has no authority for its claim that the same attorneys can't represent both a party and a non-adverse third party. While federal law says fee arrangements aren't confidential communications, DirecTV said, California law does protect those as confidential.