E-Tailers Nailed for Online Fraud
Seven Brooklyn, New York,-based consumer electronic e-tailers were forced to pay $665,000 to consumers they recently cheated and another $100,000 in investigation costs as part of a settlement reached with the NY State Attorney General.
“These companies engaged in the worst kinds of consumer fraud, from classic bait-and-switch schemes to blatant lies and bullying sales tactics,” said Attorney General Andrew Cuomo.
Under the terms of today’s settlements, the seven companies will pay a total of $665,000 in restitution and civil penalties, and over $100,000 to cover the costs of the Attorney General’s investigation. Two of the companies will close completely. The remaining five companies have agreed to substantially change their business practices and will be subject to ongoing monitoring by the Attorney General’s Office.