DirectBuy is a membership-based buying service that claims to offer its members the opportunity to buy products directly from manufacturers at wholesale prices. However, the company has been the subject of numerous lawsuits alleging that it engages in deceptive and unfair business practices.
One of the most significant lawsuits was filed in 2009 by a group of consumers alleging that DirectBuy misrepresents the prices of its products and fails to pass on savings to members. The lawsuit also alleged that DirectBuy uses high-pressure sales tactics to induce consumers to purchase memberships.
In 2011, DirectBuy agreed to pay $1.9 million to settle the lawsuit. However, the settlement was opposed by several state attorneys general, who argued that it provided little or no benefit to class members.
In addition to the class action lawsuit, DirectBuy has also been the subject of individual lawsuits by consumers alleging that they were defrauded by the company. For example, in 2013, a California court awarded $1.2 million to a consumer who alleged that DirectBuy misrepresented the price of a kitchen remodel.
Conclusion
DirectBuy has a long history of being sued by consumers and state attorneys general. The company has been accused of engaging in deceptive and unfair business practices, including misrepresenting the prices of its products, failing to pass on savings to members, and using high-pressure sales tactics.
Consumers who are considering joining DirectBuy should be aware of the company’s history of legal problems. They should also carefully review the company’s membership agreement before signing up.
FAQs
What are the benefits of joining DirectBuy?
DirectBuy claims to offer its members the opportunity to buy products directly from manufacturers at wholesale prices. However, consumers should be aware that the company has been accused of misrepresenting the prices of its products and failing to pass on savings to members.
What are the risks of joining DirectBuy?
Consumers who join DirectBuy may be at risk of being defrauded by the company. The company has been accused of using high-pressure sales tactics and misrepresenting the terms of its membership agreement.
How can I protect myself from being defrauded by DirectBuy?
Consumers who are considering joining DirectBuy should carefully review the company’s membership agreement before signing up. They should also be aware of the company’s history of legal problems.
What should I do if I think I have been defrauded by DirectBuy?
If you think you have been defrauded by DirectBuy, you should contact a consumer protection attorney. You may also want to file a complaint with the Federal Trade Commission (FTC).
Is there a class action lawsuit against DirectBuy?
Yes, there is a class action lawsuit against DirectBuy. The lawsuit was filed in 2009 and alleges that DirectBuy misrepresents the prices of its products and fails to pass on savings to members. The lawsuit is currently ongoing.
References:
- DirectBuy Wikipedia Page: https://en.wikipedia.org/wiki/DirectBuy
- Public Citizen Press Release: Court Rejects DirectBuy Class-Action Settlement: https://www.citizen.org/news/win-court-rejects-directbuy-class-action-settlement-that-offered-little-or-no-benefit-to-the-class/
- Washington State Attorney General’s Office Press Release: Attorneys General Oppose DirectBuy’s Class-Action Lawsuit Settlement: https://www.atg.wa.gov/news/news-releases/attorneys-general-oppose-directbuy-s-class-action-lawsuit-settlement