CONSUMER FORUM

‘As Seen on TV’ firm sued for taking high-pressure sales tactics too far

Posted Aug. 24, 2014, at 10:26 a.m.

New Jersey’s attorney general and that state’s Division of Consumer Affairs have filed a complaint against Telebrands, the company known for its “As Seen on TV” series of offers.

The agencies allege Telebrands violated the state’s Consumer Fraud Act through its vigorous “upselling” via the company’s automated phone system and websites. When customers tried to place orders by phone or online, they received repeated prompts to order more goods and few ways to decline.

The five-count lawsuit also accuses Telebrands of shipping and billing for goods customers did not order and for running what the suit says were misleading ads, among other violations. The agencies also claim the company’s ordering system kept some callers tied up for a half hour or more, didn’t allow customers to verify their orders before authorizing charges, didn’t provide total costs of orders and wouldn’t give customers a clear way to decline additional products.

The Division of Consumer Affairs had plenty of complaints — 340 of them from 2012 through July of this year. It also did several months’ worth of undercover work, buying items that included “Instabulbs,” the “Pocket Hose” and the “Olde Brooklyn Lantern” through Telebrands websites and the toll-free numbers in the firm’s TV ads and infomercials.

“This action against Telebrands alleges that consumers were repeatedly pressured through gimmickry, misrepresentations and high-pressure sales tactics to buy products they didn’t want,” Steve Lee, the acting consumer affairs director, said.

He added that return policies were not as represented in ads and on the company’s website and called Telebrands’s actions “unconscionable.”

Telebrands founder and President A.J. Khubani said in a statement, “We take pride that for more than three decades, tens of millions of consumers have trusted TeleBrands for delivering innovative products.”

A search of the Better Business Bureau website for Telebrands reveals a list of more than 200 alternate business names based on products sold, from AB King Pro to Zero Pain.

Khubani’s statement also said consumer satisfaction is “always our top priority.”

“We are confident that this matter with the state of New Jersey will be resolved in short order,” Khubani added.

The lawsuit claims customers often received merchandise they had not ordered; there were no instructions on returning unwanted items; and if they did return items, they had to do so at their expense. The suit also charges that when callers tried to reach customer service people, they were placed on hold for long periods or were disconnected.

The Consumer Fraud Act provides restitution of up to $10,000 per violation. Because Telebrands was operating under a consent judgment in 2001 for similar violations, New Jersey is asking for penalties of up to $20,000 per violation.

Consumers who believe they have been cheated or scammed by a business or suspect any other form of consumer abuse can file a complaint with the New Jersey Division of Consumer Affairs by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200. Consumers also can file online at https://www20.state.nj.us/LPSCA_COMPL/ or download a complaint form to fill out and mail. Include copies of as much supporting documentation as possible.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

 

SEE COMMENTS →

ADVERTISEMENT | Grow your business
ADVERTISEMENT | Grow your business

Similar Articles

More in Business