'As Seen On TV' company slapped with fraud lawsuit
New Jersey officials say Telebrands engaged in 'unconscionable commercial practices'
The company that sells "limited time" and "special offer" products on television like HeelTastic, Chefdini, and the spill-free Wow Cup is being sued by New Jersey for scamming customers.
The state's Department of Consumer Affairs says Telebrands, the 'As Seen On TV' marketer, has violated the Consumer Fraud Act by "aggressively upselling products … failing to provide means for consumers to opt out of the ordering process, shipping and billing for products not ordered by consumers, and using misleading advertisements."
According to state documents, the violations were uncovered through customer complaints as well as an undercover investigation, which found Telebrand's toll-free phone numbers trapped people into buying products they never intended to purchase and for more money than expected.
"We are bringing this action to end the abusive business practices that Telebrands allegedly is inflicting upon consumers," said acting state Attorney General John Hoffman.
Telebrands defends practices
Telebrand president A.J. Khubani responded in a statement that the company is proud to have delivered "innovative products" to tens of millions of customers in the past 30 years.
"Consumer satisfaction is always our top priority," said Khubani.
The company is accused of five violations under the Consumer Fraud Act. The state is seeking a penalty of up to $20,000 for each violation, plus refunds for the consumers believed to have been cheated.