Fred Burton
Well-known
News release today:
ATTORNEY GENERAL ABBOTT PURSUES ENFORCEMENT ACTION
AGAINST TWO WEB-BASED ELECTRONICS RETAILERS
Broadway Photo, Starlight Camera & Video cited for deceiving purchasers
AUSTIN - Texas Attorney General Grcg Abbott today charged two online digital camera and
electronics retailers with conducting an unlawful bait-and-switch sales scheme. Today's
enforcement action seeks restitution for Texans who suffered financially because of the
defendants' unlawful conduct.
According to state investigators, Broadway Photo, L.L.C. and Starlight Camera & Video Inc.,
both of Brooklyn, N.Y., attempted to attract customers by offering the lowest retail prices on
price-comparison Web sites. Once custoroer3 selected merchandise and made credit card
purchases via the defendants' Web sites, customers were notified that their orders had been
processed. Despite the .order-processing notice, customers were subsequently asked to call a
specified telephone number to confirm their orders.
However, rather than use the calls to confirm customers orders, the defendants instead initiated
aggressive, high-pressure sales pitches promoting over-priced accessories, including memory
cards and batteries. The defendants' telemarketcrs insisted these upgraded accessories were
needed in order for the customers' confirmed merchandise to function normally.
When customers refused these offers, the defendants told the customers the confirmed
merchandise was substandard and lacked warranties. The defendants' telemarketers encouraged
customers to purchase different, more expensive products. If customers refused, the defendants
canceled the orders, claiming the products were indefinitely back-ordered. When the defendants
actually did ship orders, customers who intended to purchase new merchandise often received
used or refurbished products.
The Office of the Attorney General is seeking injunctions halting this conduct and civil penalties
of up to $20,000 per violation of the Texas Deceptive Trade Practices Act.
ATTORNEY GENERAL ABBOTT PURSUES ENFORCEMENT ACTION
AGAINST TWO WEB-BASED ELECTRONICS RETAILERS
Broadway Photo, Starlight Camera & Video cited for deceiving purchasers
AUSTIN - Texas Attorney General Grcg Abbott today charged two online digital camera and
electronics retailers with conducting an unlawful bait-and-switch sales scheme. Today's
enforcement action seeks restitution for Texans who suffered financially because of the
defendants' unlawful conduct.
According to state investigators, Broadway Photo, L.L.C. and Starlight Camera & Video Inc.,
both of Brooklyn, N.Y., attempted to attract customers by offering the lowest retail prices on
price-comparison Web sites. Once custoroer3 selected merchandise and made credit card
purchases via the defendants' Web sites, customers were notified that their orders had been
processed. Despite the .order-processing notice, customers were subsequently asked to call a
specified telephone number to confirm their orders.
However, rather than use the calls to confirm customers orders, the defendants instead initiated
aggressive, high-pressure sales pitches promoting over-priced accessories, including memory
cards and batteries. The defendants' telemarketcrs insisted these upgraded accessories were
needed in order for the customers' confirmed merchandise to function normally.
When customers refused these offers, the defendants told the customers the confirmed
merchandise was substandard and lacked warranties. The defendants' telemarketers encouraged
customers to purchase different, more expensive products. If customers refused, the defendants
canceled the orders, claiming the products were indefinitely back-ordered. When the defendants
actually did ship orders, customers who intended to purchase new merchandise often received
used or refurbished products.
The Office of the Attorney General is seeking injunctions halting this conduct and civil penalties
of up to $20,000 per violation of the Texas Deceptive Trade Practices Act.
