Not As Seen On TV: Essex County Company Settles Fraud In Advertising Lawsuit

If you’ve ordered an “as seen on TV” product and ended up getting charged more than you planned, it may not be entirely your fault.

On Monday, Telebrands Corp. - the Fairfield, New Jersey-based company best known for its “as seen on TV” products – settled a lawsuit with the NJ Office of the Attorney General and Division of Consumer Affairs which alleged that the company violated the New Jersey Consumer Fraud Act and Advertising Regulations.

According to authorities, the company:

• Aggressively upsold products through its IVR phone system and websites
• Subjected consumers to a lengthy ordering process
• Failed to provide a means for consumers to decline offers for additional products
• Failed to provide consumers with an opportunity to confirm the merchandise order prior to authorizing charges
• Shipped and billed for additional products that consumers declined to purchase
• Failed to provide consumers with the total cost of their orders
• Failed to provide consumers with an opportunity to speak with a live customer service representative when ordering through the IVR system

The charges were filed after the Division of Consumer Affairs allegedly made undercover purchases of multiple Telebrands products, including Instabulbs, the Olde Brooklyn Lantern and the Pocket Hose.

The 2014 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.

According to the settlement agreement, Telebrands must pay a $550,000 fine and revise its business practices to bring the company into compliance with the law. The company is also required to develop and implement related training materials for its customer service representatives.

In addition, Telebrands must employ a Consumer Affairs Liaison for up to two years at its own expense, who will monitor Telebrands’ compliance with the settlement terms and applicable laws, facilitate resolution of consumer complaints and provide quarterly reports to the DCA.