William Westhoven

@WWesthoven

The acting Attorney General of New Jersey doesn't see eye-to-eye with Telebrand, producers of the Fairfield-based "As Seen on TV" infomercials he has charged with numerous violations of the Consumer Fraud Act.

Telebrands, known for pitching gadgets and products ranging from the "Pocket Hose" and "liquid lawn" to the Olde Brooklyn Lantern, was charged Wednesday with a five-count complaint by the state Division of Law in Essex County Superior Court.

The company was founded by Chief Executive Officer AJ Khubani, a 1978 graduate of Boonton High School who was inducted into the school's Hall of Fame in 2012.

The complaint also alleges that Telebrands violated the terms of a 2001 Final Consent Judgment and Order that resolved prior litigation with the state and, among other things, required the company to comply with the Consumer Fraud Act. From 2012 through July 2014, the division says it received, either directly or indirectly, 340 consumer complaints regarding Telebrands' business practices.

"As demonstrated by its alleged actions, Telebrands cannot be trusted to do right by its customers or to even honor its own 2001 pledge to follow our consumer protection laws," Acting Attorney General John J. Hoffman said in a news release. "We are bringing this action to end the abusive business practices that Telebrands allegedly is inflicting upon consumers."

"We take pride that for more than three decades, tens of millions of consumers have trusted TeleBrands for delivering innovative products," Khubani said in response to the complaint. "Consumer satisfaction is always our top priority. We are confident that this matter with the state of New Jersey will be resolved in short order."

The state's complaint alleges that Telebrands engaged in unconscionable commercial practices, made false promises or misrepresentations, knowingly omitted material facts and violated advertising regulations by obscuring material facts (such as processing fees) and using misleading terms (such as "special offer") in its infomercials and ads.

The charges also are based on a Division of Consumer Affairs undercover investigation that, over several months, had investigators make purchases of products advertised and offered by Telebrands. The purchases were made through various Telebrands websites and as well as the toll-free numbers featured in the company's commercials and infomercials.

The state's complaint also alleges that Telebrands subjected consumers to a lengthy ordering process, sometimes lasting more than 30 minutes, and aggressively upsold customers, citing an instance during undercover Instabulb purchase in which the buyer was solicited for at least seven additional products.

In another instance, an investigator who attempted to return an Olde Brooklyn Lantern for a refund was required to make four telephone calls to Telebrands after being disconnected twice and placed on hold once. After finally reaching a representative, the investigator was instructed to call another number, which connected him to the Telebrands IVR System.

After being placed on hold, the investigator spoke with a Telebrands customer service representative, who stated that the return could not be processed without a credit card number. The investigator then asked to speak with a supervisor and was placed on hold for three minutes. The supervisor also stated that a credit card number was needed to process the refund even though the refund policy posted on the company's web site stated that a credit card was not needed.

In other cases, the state alleges that customers received non-conforming merchandise or merchandise that they did not order, were not provided with instructions as to the return of merchandise, were required to return the nonconforming merchandise or merchandise not ordered at the consumers' expense, and had difficulty in communicating with customer-service representatives.

"This action against Telebrands alleges that consumers were repeatedly pressured through gimmickry misrepresentations, and high-pressure sales tactics to buy products they didn't want," Acting Consumer Affairs Director Steve Lee said.

The state is seeking restitution for the affected consumers, civil penalties and reimbursement of investigation and attorneys' fees. The Consumer Fraud Act provides for a civil penalty of up to $10,000 per violation. Based on Telebrands' violation of the 2001 consent judgment, the state is seeking enhanced civil penalties of up to $20,000 for each violation.

Staff Writer William Westhoven: 973-428-6627; wwesthoven@dailyrecord.com.