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LAWSUITS NEWS & LEGAL INFORMATION

Free Hosiery

Philadelphia, PA: (Feb-21-08) Pennsylvania Attorney General Tom Corbett's office brought a lawsuit against HCI Direct Inc., a hosiery company, alleging that it violated consumer protection laws. The suit claimed that the Bensalem, PA, company offered free hosiery samples by mail and that when people responded to the free offer, they were automatically enrolled in a continuity sales plan. Abbott stated that unless a consumer affirmatively opted out of the plan, they were continually charged and payment for one shipment automatically triggered another shipment.

Sources close to the case stated that as part of a settlement reached, HCI Direct agreed to pay $455,000 to settle allegations. Company spokespersons said that through the settlement, the company agreed to provide clear information to people responding to offers, including information on terms and how to cancel, the Attorney General's Office said. [PHILADELPHIA BUSINESS JOURNAL: HOSIERY SCAM]


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Published on Feb-24-08


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