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Attorney Generals Oppose DirectBuy Class Action Settlement

Sarah Mirando  |  April 16, 2011

Category: Legal News
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Attorney Generals Oppose DirectBuy Class Action Settlement

 

By Kimberly Mirando

DirectBuyDirectBuy has reached a preliminary class action lawsuit settlement for allegedly deceiving consumers into purchasing memberships that cost $4,000 or more under the false pretense that they are able to buy items at “direct” manufacturer prices. However, a group of 39 state attorney generals filed an objection this week to the proposed settlement because they say does not adequately protect consumers.

 

The DirectBuy class action lawsuit accuses DirectBuy, which claims to sell home improvement items and furnishings at a “direct insider” price through a paid membership, of fraudulent misrepresentation by implying that its paid memberships would entitle customers to purchase goods from manufacturers and suppliers at actual cost. However, the class action alleges DirectBuy received kickbacks and incentives from suppliers and manufacturers of goods purchased by DirectBuy members, which actually inflated the cost of the goods. This arrangement was not disclosed to customers until early 2009.

 

The proposed DirectBuy class action settlement would give current members a 28-month DirectBuy membership renewal for the price of 24 months, or a 13-month renewal for the price of 12 months. Former members would be eligible to receive a 2-month free membership at their most recent membership level.

 

Thirty-nine attorney generals filed an objection to the proposed class action settlement, however, saying the so-called fee and reduced-price memberships offered are not fair, reasonable and adequate settlements for most of the customers harmed.

 

“The proposed settlement is, in essence, a sales vehicle for defendants designed to drive current and former customers into membership renewal contracts and to the same manufacturers and suppliers from whom defendants have acknowledged receiving kickbacks and incentives,” said Connecticut Attorney General George Jepsen. “Standing alone, the memberships have little value.”

 

The attorney generals also oppose the fact that the proposed settlement would not prohibit similar future conduct by DirectBuy.

 

A fairness hearing on the proposed DirectBuy class action lawsuit settlement is scheduled for May. The case is titled Christopher Wilson et al. v. Direct Buy, Inc. et al., Case No. 3:09-CV-00590 (JCH), United States Court, District of Connecticut.

 

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Updated April 16th, 2011

 

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28 thoughts onAttorney Generals Oppose DirectBuy Class Action Settlement

  1. Rodney McCord says:
    February 2, 2020 at 8:07 am

    They charged my bank account members fee my ex sign up for I can’t buy anything from them but they are robbery and should pay every one back for scamming people I have a membership card worth nothing ?????

    Reply
  2. Luz Elena Caro says:
    April 11, 2019 at 12:39 pm

    I got ripped off too, I paid the membership in 2008 right before moving into my new home which I needed furnishing for and they sold me on the idea that I would get low prices on items that I could gift family and friends. Well I paid the monthly fee for a while but never purchased anything! I really wish I could get some sort of compensation for all the money I lost which is in the thousands! This is by far the #1 regret I have in my life thus far!

    Reply
    1. Mary Ann Jones says:
      June 30, 2019 at 3:28 pm

      I reviewed the contract anted that a promise made in the membership sell it point wa not in there. Was told it was automatic. If I paid my membership fee and did not use that amount in sales, my fee would be returned to me. That was the only reason I signed. Half way through the payments I received a letter that the service cent I went to was closed and all purchases would have to be on line. Then the payments were changed to a different bank.
      Not once was I told that the reps where I purchased membership committed fraud and lied to get people to sign. I requested my money back twice to no avail. But I did get an email after the fact acknowledging the fraud, but sorry no returns.

      Reply
      1. Hoffman says:
        January 22, 2020 at 5:57 am

        Do you still have to pay the rest of the membership? How do I get out of this madness?

        Reply
  3. Alice Neilson says:
    June 12, 2017 at 8:12 am

    I put a ton of money into a direct buy membership from around the 2007 time period. I made payments for awhile and all I ever got was a rocking chair and ottaman! After I paid the big chunk off, I paid the yearly fee for awhile. A few years ago I renewed at a discount price after being away for awhile. I did that at least once and was contemplating seeing about doing it again a few months ago. Last time I checked there was still a Monroeville location. Today I checked, only to find that location and any others that are less than 3-4 hours away are closed also! I had no idea! I renewed at discount rate at least once because I felt I had invested so much in the past I should try to get something out of it other than the 1 item! What a waste of so much money!

    Reply
  4. Teresa says:
    April 18, 2017 at 10:08 am

    Is there a current lawsuit against Direct Buy (2017) They are scam artists no doubt!

    Reply
  5. Jeannette says:
    March 18, 2017 at 8:04 am

    Total ripoff company. They get you on shipping and handling. Most of the S & H fees are almost half of the purchase price. I don’t know how they have been able to get away with deceiving the public for so long.

    Reply
    1. Kent Ogboh says:
      May 19, 2022 at 4:31 pm

      I only bought t.v. and 2 other items after paying much for membership. Directbuy is scam company.

      Reply
  6. Darrin Robinson says:
    February 5, 2017 at 6:31 am

    Well, well,well I see that the only thing that they have allowed these individuals to do is continually rip people off.They just sent me a renewal and they don’t even have a showroom in Alabama anymore. This place needs to be stopped. …

    Reply
  7. LM SIMS says:
    September 3, 2016 at 9:01 pm

    THEY NEED TO START A NEW CLASS ACTION SUIT AGAINST DIRECT BUY! THEY RIPPED ME OFF AS WELL!

    Reply
    1. Bekah B says:
      December 22, 2016 at 6:15 pm

      If they can get out of their debt, members should get their money back

      Reply
  8. Angella Petgrave says:
    April 21, 2013 at 4:32 pm

    infomation

    Reply
  9. Angella Petgrave says:
    April 21, 2013 at 4:31 pm

    angella

    Reply
  10. Kevin McHugh says:
    January 28, 2013 at 8:47 pm

    Please keep me advised of the outcome.

    Reply
1 2 3

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28 thoughts onAttorney Generals Oppose DirectBuy Class Action Settlement

  1. Rodney McCord says:
    February 2, 2020 at 8:07 am

    They charged my bank account members fee my ex sign up for I can’t buy anything from them but they are robbery and should pay every one back for scamming people I have a membership card worth nothing ?????

    Reply
  2. Luz Elena Caro says:
    April 11, 2019 at 12:39 pm

    I got ripped off too, I paid the membership in 2008 right before moving into my new home which I needed furnishing for and they sold me on the idea that I would get low prices on items that I could gift family and friends. Well I paid the monthly fee for a while but never purchased anything! I really wish I could get some sort of compensation for all the money I lost which is in the thousands! This is by far the #1 regret I have in my life thus far!

    Reply
    1. Mary Ann Jones says:
      June 30, 2019 at 3:28 pm

      I reviewed the contract anted that a promise made in the membership sell it point wa not in there. Was told it was automatic. If I paid my membership fee and did not use that amount in sales, my fee would be returned to me. That was the only reason I signed. Half way through the payments I received a letter that the service cent I went to was closed and all purchases would have to be on line. Then the payments were changed to a different bank.
      Not once was I told that the reps where I purchased membership committed fraud and lied to get people to sign. I requested my money back twice to no avail. But I did get an email after the fact acknowledging the fraud, but sorry no returns.

      Reply
      1. Hoffman says:
        January 22, 2020 at 5:57 am

        Do you still have to pay the rest of the membership? How do I get out of this madness?

        Reply
  3. Alice Neilson says:
    June 12, 2017 at 8:12 am

    I put a ton of money into a direct buy membership from around the 2007 time period. I made payments for awhile and all I ever got was a rocking chair and ottaman! After I paid the big chunk off, I paid the yearly fee for awhile. A few years ago I renewed at a discount price after being away for awhile. I did that at least once and was contemplating seeing about doing it again a few months ago. Last time I checked there was still a Monroeville location. Today I checked, only to find that location and any others that are less than 3-4 hours away are closed also! I had no idea! I renewed at discount rate at least once because I felt I had invested so much in the past I should try to get something out of it other than the 1 item! What a waste of so much money!

    Reply
  4. Teresa says:
    April 18, 2017 at 10:08 am

    Is there a current lawsuit against Direct Buy (2017) They are scam artists no doubt!

    Reply
  5. Jeannette says:
    March 18, 2017 at 8:04 am

    Total ripoff company. They get you on shipping and handling. Most of the S & H fees are almost half of the purchase price. I don’t know how they have been able to get away with deceiving the public for so long.

    Reply
    1. Kent Ogboh says:
      May 19, 2022 at 4:31 pm

      I only bought t.v. and 2 other items after paying much for membership. Directbuy is scam company.

      Reply
  6. Darrin Robinson says:
    February 5, 2017 at 6:31 am

    Well, well,well I see that the only thing that they have allowed these individuals to do is continually rip people off.They just sent me a renewal and they don’t even have a showroom in Alabama anymore. This place needs to be stopped. …

    Reply
  7. LM SIMS says:
    September 3, 2016 at 9:01 pm

    THEY NEED TO START A NEW CLASS ACTION SUIT AGAINST DIRECT BUY! THEY RIPPED ME OFF AS WELL!

    Reply
    1. Bekah B says:
      December 22, 2016 at 6:15 pm

      If they can get out of their debt, members should get their money back

      Reply
  8. Angella Petgrave says:
    April 21, 2013 at 4:32 pm

    infomation

    Reply
  9. Angella Petgrave says:
    April 21, 2013 at 4:31 pm

    angella

    Reply
  10. Kevin McHugh says:
    January 28, 2013 at 8:47 pm

    Please keep me advised of the outcome.

    Reply
1 2 3

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.

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