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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. Juan Mendoza says:
    August 29, 2022 at 10:37 am

    I’m getting calls from Beta finance inc. Wanted 2000 dollars for a lawsuit . Which use to be Direct Buy and I have never purchased anything from them.

    Reply
  2. Janet Jode says:
    November 28, 2021 at 6:00 am

    I the day after Thanksgiving got a summons to go to court because they sold the account to a third party, coming after me for services I never got. I signed up in Gaithersburg MD because I was redoing my kitchen. I went back to the store to order counter tops and the store was gone! I never made any purchases at all however, they still expected me to pay them the membership fee. Out raigous. Even now.

    Reply
  3. Augi says:
    April 28, 2021 at 8:21 am

    Been a member since 2007. We paid all fees up front at that time so I can’t say anything about the people complaining about banks calls and loans.

    What I can comment on is we loved it all the way up until they closed all the brick and mortar warehouses. Then they claimed BK and were taken over by a holding company and everything fell apart. Service has been terrible, pricing has been terrible and now they are forcing delivery again which they had issues with in the past. Sorry can’t pick it up anywhere we have to charge you a delivery fee of almost the same price as the item. By the time your done adding fees you can order it from Amazon or Wayfair for about the same cost.

    Lets talk about delays. I placed order in October of 2020 four delays later they said it wouldn’t ship until end of May and a fifth delay. Cancelled order.

    Now they want to force shipping on my latest order. I refused and they wont cancel my subscription and refund my just renewed two years.

    I’m done with them and looking for others to jump on the bandwagon and finally put them out of business!!

    Reply
    1. Karen says:
      August 3, 2022 at 9:35 pm

      I’m in the same boat. $875 to deliver a bathtub when everyone else is free. When all said and done I would be paying hundreds more for each bathtub I picked. Something is terribly wrong with that and I also just renewed.

      Reply
  4. Maria Mendoza says:
    March 16, 2021 at 10:14 am

    How did you solve that problem? I am passing through the same, any advice? Were they able to garnished your wages or your tax refund?

    Reply
  5. Maria Mendoza says:
    March 16, 2021 at 10:10 am

    I got a very rude call from someone treating me and asking me to pay 6000 immediately has anyone is having the same problem???

    Reply
  6. Barbara Winston Klinnert says:
    December 29, 2020 at 7:24 am

    Mike became a member back in 2006. I started paying the $200 a year Until they closed the store closest to me in Albuquerque. They would not let me sell my membership. So I stopped paying about two years ago for $200 a year. I feel I spent several thousand dollars to become a member and they still try to bleed me even after they close the store closest to me. I would like a refund.
    My name is Barbara Klinnert now but my name before that was Barbara Winston.

    Reply
  7. William says:
    December 19, 2020 at 4:31 pm

    I have been a happy member since 2004 and have spent in excess of 100k. I use it wisely for my personal and rental properties. Not everything is cheaper but you need to be a smart buyer. Stupid people that complain are the same smucks who fall for Indian tella marketing scams

    Reply
    1. Jane Smyth says:
      October 1, 2022 at 10:47 am

      You are a nasty SOB a-hole.

      Reply
  8. Susan E Guidry says:
    August 5, 2020 at 3:44 pm

    My husband and I have been members since 2013; I think their customer service people are saints to put up with all the complaints I have levied against them in the past several years! Ridiculously long delivery times, “temporarily” out of stock lines they give…
    Now they do not offer the home improvement items I need; like lumber, interior doors, roofing, etc.. They have plenty installers, just no product!

    Maybe we can start another class action law suit?

    Reply
  9. Gin says:
    May 7, 2020 at 8:15 pm

    I’m recieving harassing phone calls. Threatening to garnish my wages, put liens and levies on my property. For a loan I never took out with them! I will keep fighting this they are SCAM!

    Reply
  10. HOFFMAN says:
    May 2, 2020 at 3:31 pm

    IS THERE A CURRENT LAWSUIT OUT?????”2020 HELPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP.

    THESE PEOPLE COME FOR PEOPLE LIKE THEY REALLY TOOK $5,000 FROM THEM. UNBELIEVABLE. I USED THE MEMBERSHIP FOR 1 GALLON OF PAINT. THATS A $,5000 GALLON OF PAINT. ALL JOKES ASIDE, HOW DO I GET OUT OF THIS! PLEASE HELP!!!!!!!!!!!!!!

    Reply
    1. Gin says:
      May 7, 2020 at 8:14 pm

      I’m recieving harassing phone calls. Threatening to garnish my wages, put liens and levies on my property. For a loan I never took out with them! I will keep fighting this they are SCAM!

      Reply
1 2 3

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28 thoughts onAttorney Generals Oppose DirectBuy Class Action Settlement

  1. Juan Mendoza says:
    August 29, 2022 at 10:37 am

    I’m getting calls from Beta finance inc. Wanted 2000 dollars for a lawsuit . Which use to be Direct Buy and I have never purchased anything from them.

    Reply
  2. Janet Jode says:
    November 28, 2021 at 6:00 am

    I the day after Thanksgiving got a summons to go to court because they sold the account to a third party, coming after me for services I never got. I signed up in Gaithersburg MD because I was redoing my kitchen. I went back to the store to order counter tops and the store was gone! I never made any purchases at all however, they still expected me to pay them the membership fee. Out raigous. Even now.

    Reply
  3. Augi says:
    April 28, 2021 at 8:21 am

    Been a member since 2007. We paid all fees up front at that time so I can’t say anything about the people complaining about banks calls and loans.

    What I can comment on is we loved it all the way up until they closed all the brick and mortar warehouses. Then they claimed BK and were taken over by a holding company and everything fell apart. Service has been terrible, pricing has been terrible and now they are forcing delivery again which they had issues with in the past. Sorry can’t pick it up anywhere we have to charge you a delivery fee of almost the same price as the item. By the time your done adding fees you can order it from Amazon or Wayfair for about the same cost.

    Lets talk about delays. I placed order in October of 2020 four delays later they said it wouldn’t ship until end of May and a fifth delay. Cancelled order.

    Now they want to force shipping on my latest order. I refused and they wont cancel my subscription and refund my just renewed two years.

    I’m done with them and looking for others to jump on the bandwagon and finally put them out of business!!

    Reply
    1. Karen says:
      August 3, 2022 at 9:35 pm

      I’m in the same boat. $875 to deliver a bathtub when everyone else is free. When all said and done I would be paying hundreds more for each bathtub I picked. Something is terribly wrong with that and I also just renewed.

      Reply
  4. Maria Mendoza says:
    March 16, 2021 at 10:14 am

    How did you solve that problem? I am passing through the same, any advice? Were they able to garnished your wages or your tax refund?

    Reply
  5. Maria Mendoza says:
    March 16, 2021 at 10:10 am

    I got a very rude call from someone treating me and asking me to pay 6000 immediately has anyone is having the same problem???

    Reply
  6. Barbara Winston Klinnert says:
    December 29, 2020 at 7:24 am

    Mike became a member back in 2006. I started paying the $200 a year Until they closed the store closest to me in Albuquerque. They would not let me sell my membership. So I stopped paying about two years ago for $200 a year. I feel I spent several thousand dollars to become a member and they still try to bleed me even after they close the store closest to me. I would like a refund.
    My name is Barbara Klinnert now but my name before that was Barbara Winston.

    Reply
  7. William says:
    December 19, 2020 at 4:31 pm

    I have been a happy member since 2004 and have spent in excess of 100k. I use it wisely for my personal and rental properties. Not everything is cheaper but you need to be a smart buyer. Stupid people that complain are the same smucks who fall for Indian tella marketing scams

    Reply
    1. Jane Smyth says:
      October 1, 2022 at 10:47 am

      You are a nasty SOB a-hole.

      Reply
  8. Susan E Guidry says:
    August 5, 2020 at 3:44 pm

    My husband and I have been members since 2013; I think their customer service people are saints to put up with all the complaints I have levied against them in the past several years! Ridiculously long delivery times, “temporarily” out of stock lines they give…
    Now they do not offer the home improvement items I need; like lumber, interior doors, roofing, etc.. They have plenty installers, just no product!

    Maybe we can start another class action law suit?

    Reply
  9. Gin says:
    May 7, 2020 at 8:15 pm

    I’m recieving harassing phone calls. Threatening to garnish my wages, put liens and levies on my property. For a loan I never took out with them! I will keep fighting this they are SCAM!

    Reply
  10. HOFFMAN says:
    May 2, 2020 at 3:31 pm

    IS THERE A CURRENT LAWSUIT OUT?????”2020 HELPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP.

    THESE PEOPLE COME FOR PEOPLE LIKE THEY REALLY TOOK $5,000 FROM THEM. UNBELIEVABLE. I USED THE MEMBERSHIP FOR 1 GALLON OF PAINT. THATS A $,5000 GALLON OF PAINT. ALL JOKES ASIDE, HOW DO I GET OUT OF THIS! PLEASE HELP!!!!!!!!!!!!!!

    Reply
    1. Gin says:
      May 7, 2020 at 8:14 pm

      I’m recieving harassing phone calls. Threatening to garnish my wages, put liens and levies on my property. For a loan I never took out with them! I will keep fighting this they are SCAM!

      Reply
1 2 3

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