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Magnetic Bedding Attracts Lawsuits, Complaints

By Mark Huffman
ConsumerAffairs.com

September 11, 2006

Magnets & Health • Magnetic Bedding Attracts Lawsuits, Complaints • Ohio Sues Greentree • California Sues European Health Concepts --- Complaints • Greentree Complaints • European Health Concepts Complaints

It starts with a postcard in your mailbox, promising a free dinner, the best night's sleep you ever had, and a cure to all your medical ailments.

But for many consumers who purchase Greentree Health Systems' magnetic mattress pads and other products, it ends with frustration and a long wait for promised rebates that are never delivered.

"On March 7, 2003 we purchased 2 magnetic pillows and two magnetic seat cushions $454.74. We were promised up to a full refund of $454.74 if we filed a claim to Cashback America, Inc. and if we submitted the proper forms and certifications by a certain date," James of Belefonte, Pennsylvania told ConsumerAffairs.com.

"We submitted these forms on Feb. 17, 2006 and received confirmation indicating Cashback America, Inc. received it on Feb. 21, 2006. We were promised we would receive up to full value within 6-8 weeks. We have been waiting for five months and have not heard a word."

Other recent complaints to the Web site tell a similar story. Expensive items were purchased in 2003 with the promise that after 35 months, the entire purchase price would be returned through an elaborate rebate system.

Other consumers say they never even received their magnetic bedding, much less the rebates.

Greentree Health Systems, based in Lebanon, Ohio, was sued last year by the Ohio Attorney General's Office for failing to deliver purchases within eight weeks, then failing to provide refunds for undelivered products or offer proper cancellation procedures.

"When a company is unable to deliver a good or service, it must offer some reasonable means for the consumer to be reimbursed in a timely manner. If that is not possible, the company should not be allowed to continue doing business in Ohio," Ohio Attorney General Jim Petro said at the time.

The Ohio Attorney General's suit, which does not address the validity of the products themselves, has not yet been resolved. However, other states have challenged the sale of magnetic bedding products for their alleged health benefits.

In September 2002 the state of California filed a $1.5 million lawsuit against a company called European Health Concepts, charging it with promoting the supposed health benefits of magnetic mattress pads, which in fact have no proven effects on health.

The legal complaint, filed by California Attorney General Bill Lockyer, demanded that company promoters immediately cease their fraudulent business practices.

The California Department of Consumer Affairs, Attorney General and other consumer agencies reported receiving hundreds of complaints from consumers who paid $800 or more for "discounted" magnetic pads -- from European Health Concepts and several other similar companies.

As in the case of Greentree Health Systems, consumers complained of difficulty returning the pads for promised rebates. The marketing by the two companies was also remarkably similar. Consumers, mostly senior citizens, would receive a post card inviting them to a free dinner at a local restaurant, in exchange for listening to a "health presentation."

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