Iowans charged for memberships to get refunds

DES MOINES -- A New Jersey direct television marketing company has agreed to pay $10,500 for full refunds to Iowans who were charged for memberships in its “Everyday Savings Club” membership program, Iowa Attorney General Tom Miller's Office announced Tuesday.

Miller alleged that Telebrands, Inc. of Fairfield, N.J., -- which designs, manufactures and promotes personal care, pet care, and home products it features on television infomercials – enrolled customers, often without their knowledge, in the Everyday Savings Club when they purchased those items by phone or online.

Everyday Savings Club purported to save consumers money through shopping, entertainment, travel, recreation, and beauty and wellness programs, according to Miller's office. Telebrands charged consumers from $14.95 to $19.95 per month for club memberships.

“Too often, purchases from Telebrands led to month after month of membership charges to a consumer's credit or debit card for a membership the consumer didn't want, didn't use, and didn't even know about,” Miller said in a statement.

The Assurance of Voluntary Compliance agreement requires Telebrands to comply with Iowa's Buying Club Memberships Law in connection with any future sales of its memberships. In addition to the $10,500 payment for refunds, the agreement also required a $2,000 payment to the state for consumer fraud enforcement.

The company denies liability in the agreement.

The settlement will allow for full refunds to be made to all of the 242 Iowans who were charged for memberships and have not already received refunds, according to Miller's office. The company is providing a customer list -- so members do not need to contact the Consumer Protection Division – and refund checks are expected to be mailed out within a few weeks.

Miller identified a number of Telebrands products that were sold through infomercials and resulted in enrollments and membership charges for many consumers who had placed orders. The TV-advertised products included Aluma Wallet, One Second Needle, Royal Heirloom Ring, Pasta Boat, Chef Basket and Robo Stir.

The Iowa Buying Club Memberships Law requires specific written notices to make clear to consumers that they are being enrolled in an ongoing membership – notices that Telebrands had failed to provide, according to Miller.

For more information, contact the Attorney General's Consumer Protection Division through the office's

website or e-mail directly at consumer@iowa.gov. Consumers can also call the Consumer Protection Division at 515-281-5926, or outside the Des Moines area, toll free, at 1-888-777-4590.