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State authorities allege that Fairfield-based Telebrands, a product marketing company founded by CEO A.J. Khubani, pictured here in 2009, committed multiple violations of the N.J. Consumer Fraud Act.

(Star-Ledger file photo)

TRENTON — A New Jersey company that markets quirky and creative products "As Seen on TV" scammed customers by aggressively pushing more expensive products, shipping and billing for products not ordered and using misleading advertising, state authorities said today.

A five-count civil complaint filed in state Superior Court in Essex County against the Fairfield-based company, Telebrands, alleges it also violated the terms of a 2001 agreement reached with the state that, among other things, required it to comply with the state Consumer Fraud Act.

From 2012 through July of this year, the state Division of Consumer Affairs received 340 complaints about Telebrands and its business practices, authorities said.

"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 state Attorney General John Hoffman said. "We are bringing this action to end the abusive business practices that Telebrands allegedly is inflicting upon consumers."

The founder and chief executive officer of the company, A.J. Khubani, said in a statement that Telebrands was "confident this matter with the state of New Jersey will be resolved in short order."

"We take pride that for more than three decades, tens of millions of consumers have trusted TeleBrands for delivering innovative products," Khubani said. "Consumer satisfaction is always our top priority."

During several months, undercover consumer affairs investigators made various purchases — including Instabulb light bulbs, a vintage-style LED lantern and a pocket-sized water hose — through the company's website and toll-free numbers.

The complaint alleges those who called the toll-free numbers were usually connected to an automated system that subjected customers to a lengthy ordering process, sometimes lasting more than a half hour, and aggressively offered additional products without providing a way for the caller to decline.

Authorities also said the company failed to allow customers to confirm their order before authorizing charges, to provide a total cost and to connect them with a live customer service representative. The complaint also alleges the company charged for and shipped additional products that had been declined and failed to provide its return policy.

When customers ordered through its website, the company allegedly did not allow them to edit their virtual "shopping cart," resulting in orders for products they never intended or wanted to buy. Authorities also allege Telebrands didn't inform customers when they were finalizing their order and paying for it, and made it difficult to decline solicitations.

The state is seeking restitution for affected customers and, in light of the 2001 agreement, enhanced penalties of up to $20,000 for each violation of the Consumer Fraud Act. It's also seeking reimbursement for investigative and legal costs.

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