Attorney Generals Oppose DirectBuy Class Action Settlement
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Attorney Generals Oppose DirectBuy Class Action Settlement
 
By Kimberly Mirando

DirectBuyDirectBuy has reached a preliminary class action lawsuit settlement for allegedly deceiving consumers into purchasing memberships that cost $4,000 or more under the false pretense that they are able to buy items at “direct” manufacturer prices. However, a group of 39 state attorney generals filed an objection this week to the proposed settlement because they say does not adequately protect consumers.

 

The DirectBuy class action lawsuit accuses DirectBuy, which claims to sell home improvement items and furnishings at a “direct insider” price through a paid membership, of fraudulent misrepresentation by implying that its paid memberships would entitle customers to purchase goods from manufacturers and suppliers at actual cost. However, the class action alleges DirectBuy received kickbacks and incentives from suppliers and manufacturers of goods purchased by DirectBuy members, which actually inflated the cost of the goods. This arrangement was not disclosed to customers until early 2009.

 

The proposed DirectBuy class action settlement would give current members a 28-month DirectBuy membership renewal for the price of 24 months, or a 13-month renewal for the price of 12 months. Former members would be eligible to receive a 2-month free membership at their most recent membership level.

 

Thirty-nine attorney generals filed an objection to the proposed class action settlement, however, saying the so-called fee and reduced-price memberships offered are not fair, reasonable and adequate settlements for most of the customers harmed.

 

"The proposed settlement is, in essence, a sales vehicle for defendants designed to drive current and former customers into membership renewal contracts and to the same manufacturers and suppliers from whom defendants have acknowledged receiving kickbacks and incentives," said Connecticut Attorney General George Jepsen. "Standing alone, the memberships have little value."

 

The attorney generals also oppose the fact that the proposed settlement would not prohibit similar future conduct by DirectBuy.

 

A fairness hearing on the proposed DirectBuy class action lawsuit settlement is scheduled for May. The case is titled Christopher Wilson et al. v. Direct Buy, Inc. et al., Case No. 3:09-CV-00590 (JCH), United States Court, District of Connecticut.

 

 

Updated April 16th, 2011

 

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Comments   

 
#16 Melanie 2014-02-06 23:27
I am just learning about this lawsuit has their been anything done about these frauds?
 
 
#15 Mr.& Mrs. Gregg 2014-02-06 16:18
We joined after the March 2013 deadline to be part of this suit. What options to we have? Where can we get help?
 
 
#14 Reba Jones 2014-01-22 17:56
I have been a member for some time now as well and paid $7000(?) for my membership. Prices are way too high. Let me know if there has been anything else on this. I am truly interested.
 
 
#13 dale hall 2013-12-19 18:47
they suck
 
 
#12 dale hall 2013-12-19 18:47
i agree with all of the comments here. they sure sweet talk you to get you hooked, but then nothing. but they sure want they're money.
 
 
#11 Ken Staples 2013-12-12 02:43
Am I still obligated to fulllfil my contract..?
 
 
#10 Dawn 2013-10-31 20:42
It's October 31, 2013...where are we with the lawsuit? Anyone know?
 
 
#9 Ms. Tina T. 2013-09-10 21:29
I am very angry that I paid $5,000.00 for a membership that I have never used, because every time I went to one of the facilities all of the prices were higher then the local stores. I was lied to when I signed up for the program, and made to belive that this membership would pay for it self, and the the $5,00.00 was a one time fee; which I am now finding out that was not true. Now after 3 years, and no use of the membership the Driect Buy com. has been contacting me asking for more money" stating that if I don't give them $250.00 my membership will expire within the next month. This company is robbing people without a gun, and is seems that they are being allowed to get away with it. Where is the justice system how can this be allowed to keep happening? Can some one out there help us????
 
 
#8 Julie M. 2013-09-07 19:08
Is it too late to be included in the lawsuit... I signed up for the membership like 3 years ago and I spent over $6,000. Thinking their prices were going to be better than retailers.
 
 
#7 Jerry 2013-06-05 17:47
Does anyone have any information about the class action suit against direct buy?? I really need that money back and I bet you all do too.
 
 
#6 Yun Lau 2013-05-23 19:53
I share all these angry and helpless feelings that as a consumer being cheated and lured in such a money stealing tactic! I became a member at Dec 2011 and bought only a few stuff for my new apt, way too high to buy another other stuff, everyone of us know. Now, I'm still receiving the monthly bill from the financial bank for my monthly membership, can I stop paying it? I don't want my credit being mess up. Please help how should I do.
 
 
#5 ex employee 2013-05-22 17:56
I wish to remain anon - being an ex DB employee on thing that nobody has ever brought into any of these complaints is the fact that the individual clubs make 3% to 8% in "Handling fees" guests are told during the open house presentation that the clubs do no make money off the merchandise. This a flat lie. They you the 8% to cover damaged goods, wrong orders and helps to cover some of the businesses fixed expenses. Just think someone should look into this as well...
 
 
#4 kimberlie Bashaw 2013-05-14 12:32
Is it to late to sign into the class action?I was not aware of the lawsuit till recently and fall into the class action
 
 
#3 Mr.&Mrs. Comparato 2013-04-15 04:51
We have been members for several years and will not renew our membership. We have never made a purchase from them...no need to explain why. To further the insult of buying into their scheme they now have an attorney in wolves clothing pretending to represent the plantiffs....we we offered a $10.00 discount towards our next purchase to Direct Buy, what a brillant concept, the plantiffs' attorney has mangaged to outshine Direct Buys most prestigious marketing team. Would the same justice be to offer a rape victim a discounted one way cab fare back to their predator ?
 
 
#2 John McDonner 2013-04-11 00:33
My wife and I became GOLD club member in 09 for$5000.00 dollars and we feel like we have been lie to and lie too the hole time we wanted to build a fence nope direct buy Baton Rouge la could not gets us fenceing that's one of the reasons that we joined tryed to get siding for our house nope Thay don't seek Sideing anymore tryed to buy a patio cover still Thay didn't sell these are home improvement items but nope direct buy of Baton Rouge la could not sell us these things so we feel we gave them $5000.00 dollars for nothing please tell us what we can do I don't feel like a GOLD club member what can we do PLEASE HELP US!!!!!!!!!!!
 
 
#1 Mr.&Mrs Blake 2013-04-10 17:45
We are appalled,angry &feel we have been totally robbed! We have paid into this "elite club" thinking we would save a lot of money on bigger future purchases.That was several years ago..We havent bought a thing yet and we have nothing to show for the $5,000 plus we spent on a "membership" Im outragged and feel awfully damned silly! I find the Direct buy we purchased the "membership"fro m ,closed thier doors..does this mean they are out of business and we still"owe them" even more money? for what exactly? A sevice? a product?or a dream?We have NOTHING TANGIBLE We would like to be part of a group to get these funds in the right hands.Us..of course the lawyers too!Direct buy are crooks and took advantage of hard working individuals like us. We could really use that money to actually put it to use it for the initial pupose we bought this for in the first place!!! Home repairs!!!Lord knows we need it! What can you do to help us?
 

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