These back order notices did not provide consumers with the option of consenting to the delays or canceling their orders and receiving refunds, as required by the FTC's Mail or Telephone Order Rule. When consumers requested refunds, the FTC's complaint alleges, the defendants typically represented to them that they would receive refunds within one to two billing cycles. Numerous consumers, however, never received these refunds as promised. The Better Business Bureau of Chicago has received approximately 1,400 complaints, more than it has ever received about any company in the last several years. In addition, the Illinois Attorney General's Office has received numerous complaints and has filed a lawsuit against the company.
Copies are available at the address below.
The Commission vote to authorize the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, in Chicago, on Sept. 23 under seal. The seal was lifted on Sept. 25. The FTC's Chicago Regional Office handled the investigation, with invaluable assistance from Illinois Attorney General Jim Ryan. The complaint is not a finding or ruling that the defendant has actually violated the law.