This article is reproduced without permission under the Fair Use Doctrine. It was originally published at http://www.thebostonchannel.com/news/18151130/detail.html and is Copyright © 2008 Internet Broadcasting Systems, Inc.
POSTED: 9:46 am EST November 26, 2008
UPDATED: 6:01 am EST November 27, 2008
BOSTON -- What home remodeler wouldn't want to pay wholesale prices, saving hundreds -- even thousands -- of dollars on a project? "Everything you need at prices you didn't imagine possible," claims one. "Stop paying retail."
"It was appealing," said Rhonda Lisio, who paid nearly $4,200 for a membership in 2006. "The thought of saving money and buying directly from the manufacturer."
But she said she found that the club's so-called factory prices weren't the bargain she expected.
"It really didn't add up to a great savings because they were jacking up the first price that they were showing," Lisio said.
Lisio's complaint isn't isolated. Team 5 Investigates obtained a copy of a recently filed class action lawsuit that claims DirectBuy members actually paid more than the wholesale prices they were promised.
In the suit filed in federal court in Connecticut, DirectBuy is accused of making "false" and "misleading" representations about consumer savings because "unbeknownst to Class Members, Defendants receive tens of millions of dollars in 'kickbacks' from manufacturers and suppliers out of the purchase prices paid for products by DirectBuy members, thereby resulting in Class Members paying more than the direct price."
The suit claims there are thousands of dissatisfied DirectBuy members.
DirectBuy told Team 5 Investigates the suit is "misguided." They denied all accusations, saying the company never "received any illegal or improper 'kickback' of any kind."
Last year, Team 5 Investigates went undercover after receiving complaints about DirectBuy's high pressure sales tactics. Team 5 discovered people were forced to decide whether to pay several thousands of dollars to join on the spot or be banned for seven years.
After months of fighting DirectBuy, Lisio said she finally got a full refund.
"I've done much better with shopping around retail stores and finding things on clearance," she said. "And I saved a lot more than I ever would have with DirectBuy."
| Topic DirectBuyWcvb20081126 . { Edit | Ref-By | Attach | Diffs | r1.1 } |
|
Revision r1.1 - 26 Dec 2008 - 07:36 by EliMantel
Privacy Policy |
Copyright © 2000-2005 by the contributing authors.
All material on this collaboration tool is the property of the contributing authors. Collect email addresses here. Ideas, requests, problems regarding TWiki? Send feedback. |