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DirectBuy to pay $500,000 to settle with NY

Published on NewsOK Modified: January 17, 2013 at 7:47 pm •  Published: January 17, 2013

Consumers also complained that once they became members, they did not receive the savings on purchases promised buy DirectBuy, with previously undisclosed fees and shipping costs offsetting any discounts. In addition, many consumers financed their purchases through a company affiliate, which was not properly licensed, the attorney general said.

Other states have already settled with the company, but a larger class-action lawsuit is ongoing.

Under the New York settlement, DirectBuy is required to give consumers three days to cancel their memberships with a refund and it must disclose all costs and fees added to the price of its merchandise.

New York club members who joined after Jan. 1, 2007 and have not purchased $5,000 or more in merchandise, or already received a full refund, are eligible for restitution if they file a complaint by April 1, Schneiderman said.