{"id":71601,"date":"2016-08-01T09:44:35","date_gmt":"2016-08-01T13:44:35","guid":{"rendered":"http:\/\/madisoncountycourier.com\/?p=71601"},"modified":"2016-07-31T14:53:42","modified_gmt":"2016-07-31T18:53:42","slug":"schneiderman-consumers-have-a-right-to-understand-the-true-terms-of-an-offer-before-they-are-charged","status":"publish","type":"post","link":"https:\/\/madisoncountycourier.com\/?p=71601","title":{"rendered":"Schneiderman: Consumers Have A Right To Understand The True Terms Of An Offer Before They Are Charged"},"content":{"rendered":"

\"Attorny_General_Eric_T_Schneiderman\"<\/a>As part of a wider investigation into deceptive advertising and sales practices allegedly used by the direct marketing industry, Attorney General Eric T. Schneiderman today announced\u00a0 settlements with Tristar Products, Inc. (\u201cTristar\u201d), a firm headquartered in Fairfield, New Jersey, and Product Trend, LLC (\u201cProduct Trend\u201d), headquartered in Williston, Vermont.<\/p>\n

The agreements require the direct marketers to make significant reforms to their advertising, ordering processes and customer service practices.\u00a0 The marketers sell their products directly to consumers, typically through television and online advertising.<\/p>\n

Tristar\u2019s products include Genie Bra; blenders and juicers, as well as a variety of exercise equipment, such as the Ab Coaster and Cardio Twister.\u00a0 Product Trend\u2019s products include Total Pillow, Wonderhanger and Furniture Fix.<\/p>\n

The agreements also require each marketer to make a monetary payment to the New York Attorney General\u2019s Office for restitution, penalties, costs and fees, with Tristar paying $700,000 and Product Trend paying $175,000.<\/p>\n

\u201cThese agreements insure that consumers will not be hit with charges they did not authorize and will not be frustrated with long hold times or unresponsive customer service when they seek assistance,\u201d Attorney General Schneiderman said. \u201cThe settlements also bring much needed reforms to two major players in the direct marketing industry and insure that consumers will have a clear understanding of the charges before they place an order.\u201d<\/p>\n

The Attorney General\u2019s Consumer Frauds Bureau launched a probe into the industry after receiving complaints from consumers, including hundreds forwarded by the Better Business Bureau.<\/p>\n

According to the Attorney General\u2019s investigation, both marketers ran misleading infomercials on television that often featured attractively priced \u201cBuy One, Get One\u201d offers, which required consumers to purchase a double order of the advertised product. However, the ads did not adequately disclose that consumers would be charged two separate processing and handling fees or the amount of those fees, which significantly increased the cost of the offer.<\/p>\n

When consumers placed orders by phone or online, they were subjected to a confusing, automated ordering process that typically included numerous \u201cupsell\u201d offers for additional products.<\/p>\n

Consumers were also not given the opportunity to review and edit their orders before they were processed. As a result, in some cases, consumers who responded to the marketers\u2019 advertisements were charged significantly more than they expected and received products that they did not intend to order.<\/p>\n

One Product Trend customer responded to a \u201cBuy One, Get One\u201d ad for Total Pillow, advertised for $19.99, plus shipping and handling, but was charged $91.73 after placing an order online. A Tristar customer who responded to a $19.99 \u201cBuy 3, get 3\u201d Genie Bra advertisement ended up being charged $101.83. Although she subsequently returned the bras, Tristar refused to refund the $27.00 charged for shipping and handling.<\/p>\n

The Attorney General\u2019s investigation also revealed that consumers who sought warranty service from Tristar for products that malfunctioned or to obtain authorization to return products often faced long telephone hold times and otherwise had difficulty obtaining relief or assistance.<\/p>\n

The settlements require the marketers to:<\/p>\n