Telebrands To Pay $550K in NJ Settlement

Telebrands, the original creator of the “As Seen On TV” logoand products like Ambervision glasses, the SliceOMatic and a few personal care products too, has agreed to revise its Interactive Voice Response (IVR) merchandise ordering system and other business practices, and to pay $550,000 to New Jersey under terms of the Final Consent Judgment and Settlement Agreement that resolves the 2014 lawsuit filed by the Office of the Attorney General and State Division of Consumer Affairs.
 
NJ alleged in its 2014 complaint that Telebrands violated the New Jersey Consumer Fraud Act and Advertising Regulations by, among other things, aggressively upselling products through its IVR phone system and websites; subjecting consumers to a lengthy ordering process; failing to provide a means for consumers to decline offers for additional products; failing to provide consumers with an opportunity to confirm the merchandise order prior to authorizing charges; shipping and billing for additional products that consumers declined to purchase; failing to provide consumers with the total cost of their orders; and failing to provide consumers with an opportunity to speak with a live customer service representative when ordering through the IVR system.
 
 The state’s allegations, in part, were established through the undercover purchases made by division investigators of Telebrands’ products. The complaint also alleged that Telebrands, by its conduct, violated the terms of a 2001 final consent judgment and order that resolved prior litigation with the state.
 
Telebrands also markets Callous Clear and Heel-Tastic topical products as well as thePedEgg foot file and the Hurricane Spin Mop among other products.
 
Under the terms of the settlement, Telebrands, at its expense, is required to retain a Consumer Affairs Liaison for up to a two-year period, with the person subject to the approval of the Division of Consumer Affairs. The Consumer Affairs Liaison, among other things, will monitor Telebrands’ compliance with the settlement terms and applicable laws, facilitate resolution of consumer complaints and provide quarterly reports to the Division.
 
“We’ve put consumers back in control of the ordering and payment process, through these revisions to Telebrands’ business practices. No longer will consumers find themselves subjected to an onslaught of solicitations for products that they have no interest in, with no way to end the merciless upselling,” Acting Attorney General John J. Hoffman said.
 
Under the terms of the Final Consent Judgment and Settlement Agreement, Telebrands will revise its IVR system and product-devoted websites, to:
 
▪  inform consumers of the cost of their merchandise order, including any shipping and handling charges, prior to consumers authorizing payment;
 
▪  provide consumers with an option to speak with a live customer service representative when a merchandise order is placed (e.g., press “0” to speak with live Customer Service Representative);
 
▪  not repeat an offer to purchase additional merchandise, once a consumer has declined to purchase such additional merchandise;
▪  provide a means for consumers to decline solicitations for additional merchandise through the IVR system (e.g., press “1” to accept the offer and press “2” to decline the offer);
▪  only charge and/or ship to consumers the merchandise for which consumers authorized payment;
▪  clearly and conspicuously disclose to consumers the point at which they are completing a merchandise order and authorizing payment for that order;
▪  provide consumers with a means to edit their primary order on the Telebrands’ product-devoted websites before confirming their purchase and authorizing payment for that order;
▪  provide consumers with a means to edit any order, in addition to the primary order, on the Telebrands’ product-devoted websites prior to the consumer’s confirmation of his/her purchase and authorization of payment for that order;
▪  not process any merchandise order (e.g., primary order, additional order) prior to the consumer’s confirmation of his/her purchase and authorization of payment for that order;
▪  clearly and conspicuously display a link or other means through which consumers may opt-out from additional merchandise solicitations through the Telebrands’ product-devoted websites;
▪  clearly and conspicuously display a link or other means through which consumers may decline such additional merchandise solicitations, in the event a consumer chooses to view additional merchandise solicitations on the Telebrands’ product-devoted websites;
▪  ensure that on the Telebrands’ product-devoted websites, consumers must affirmatively select any items to be added to their merchandise order before Telebrands actually adds such items to their order;
▪  ensure all prices and costs associated with a consumer’s merchandise order shall be reflected on a page (e.g., confirmation page) of the Telebrands’ product-devoted websites prior to the consumer’s confirmation of the merchandise order;
▪  clearly and conspicuously disclose its purchasing, return, refund and cancellation policies; and
▪  clearly and conspicuously disclose the differences between versions of merchandise, including any “deluxe,” “basic” and/or “standard” versions.
 
“As a result of this settlement, we expect consumers will be protected through Telebrands’ strict adherence to our consumer protection laws and regulations,” said Steve Lee, acting director of the state division of consumer affairs. “The employment of a Consumer Affairs Liaison is a rare, but necessary safeguard to protect consumers, in light of our past history with Telebrands.”
TeleBrands, in a statement, said that the settlement with the New Jersey Division of Consumer Affairs will lead to an improved shopping experience for its customers. It also said it has made enhancements to its websites, IVR ystems and customer service processes to assure its customers are better informed throughout the ordering process, and there was no admission of liability as a part of the settlement and the monetary portion of the agreement covered the state's investigative costs, consumer programs and other costs under the statute.

“When these concerns were brought to our attention, we immediately welcomed the recommendations and partnership with the Division of Consumer affairs to resolve these matters. We are a company predicated on consumer satisfaction and if we can improve the experience of our customers, we want to do that expeditiously,” said TeleBrands CEO AJ Khubani. “Our company has always maintained the highest standards with regard to the quality and service of our products and marketing efforts. We take pride in the fact that for more than three decades, millions of consumers have trusted TeleBrands for delivering innovative and unique products that solve every day needs.”

Khubani founded TeleBrands in 1983.