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New Jersey Sues Online Electronics Retailer

December 4, 2006
The state of New Jersey has filed suit against an Edison, NJ-based electronics company for allegedly violating the state's Consumer Fraud Act and Advertising Regulations in its advertisement and sale of cameras and other electronic equipment.

The lawsuit, filed in Middlesex County Superior Court, alleges that Save Here Distribution, Inc., engaged in unconscionable commercial practices and made false promises and misrepresentations to consumers. The company sells items through various web sites and toll-free telephone numbers. Sale items include cameras, televisions, VCRs and gaming consoles, among other things.

The Attorney General's Office says Save Here Distribution has advertised and/or sold merchandise through the following web sites: expresscameras.com, geniuscameras.com, trustedcamera.com, trustedphoto.com, luckydigital8.com, clearviewcamera.com, bluestripephoto.com and hopecamera.com.

"While shopping online can be convenient, it is important for consumers to remain cautious and be informed about whom they are doing business with," said Attorney General Stuart Rabner. "We expect all businesses to conduct themselves in full accordance with state law; anything less will not be tolerated."

The state's complaint alleges that Save Here Distribution used bait and switch tactics, failed to deliver merchandise and misled consumers in the advertising and pricing of items. The specific allegations include:
• Failing to sell merchandise at the price advertised on the company's web site;
• Charging or attempting to separately charge for accessories or equipment that the Original Equipment Manufacturer included with the merchandise (for example, camera batteries and/or battery chargers);
• Charging consumers inflated shipping and handling fees;
• Failing to provide any price reduction for merchandise which appears to be on sale or reduced;
• Failing to inform consumers at the time of purchase that some or all of the merchandise is out of stock; and
• Refusing to permit consumers to cancel an order or merchandise upgrade prior to shipment.

The company allegedly used terms like "Price Drop", "List Price" and/or "Our Price" on its web sites without providing any price reductions for the advertised merchandise.

The state is seeking restitution for affected consumers, maximum civil penalties which currently provide for up to $10,000 for the initial violation of the Consumer Fraud Act and up to $20,000 for each subsequent violation, and reimbursement of the state's investigative costs and legal fees.

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