State Attorney General Eric T. Schneiderman said his office reached a $500,000 settlement with Indiana-based DirectBuy, after he said the company used “misleading and deceptive sales practices” with customers.
Consumers who were members of any DirectBuy club – regardless of whether it is still open – may be eligible for restitution.
DirectBuy has had a location at 4950 Genesee St. in Cheektowaga. DirectBuy closed at that location in March 2011 but reopened in the same place several weeks later. A representative at that location could not be reached Friday, but Ciminelli Development Co., which owns the property, said the location continues to operate.
Schneiderman said consumers’ complaints centered on tactics DirectBuy used to sell full-priced memberships and failing to realize the savings they were promised when they joined.
“DirectBuy lured consumers into expensive memberships by promising exclusive member-only deals with substantial savings over retail prices,” he said in a statement. “This company failed to deliver on its promises by taking advantage of consumers who were looking to save hard-earned money.”
Consumers who have not previously filed a complaint and who may be eligible for restitution should file a complaint with the state attorney general by April 1 to be considered. The consumer help line is at (914) 422-8818, and the office’s website is www.ag.ny.gov.