NEWARK — Three New York-based companies, sued by New Jersey for allegedly defrauding consumers in connection with their marketing, advertisement and/or sales of widely known consumer products, including the Turbo Cooker as well as The FIRM exercise products, have settled, agreeing to make modifications to their business practices and to resolve consumer complaints, Attorney General Peter C. Harvey and New Jersey Division of Consumer Affairs Director Kimberly Ricketts announced today.

As part of the agreement, GT Brands LLC (“GT Brands”), GT Merchandising & Licensing LLC (“GT Direct”), and GoodTimes Entertainment LLC (“GoodTimes Entertainment”) have paid the State $236,530 to cover investigative costs, attorneys’ fees and future Consumer Affairs’ initiatives and have agreed to modify their business practices as to refunds and replacement of defective merchandise, among other things. As part of the settlement, the companies have already provided refunds or replacement merchandise to nearly 400 consumers.

“This settlement will make sure that our residents get what they pay for,” Attorney General Harvey said. “The companies cooperated with the State to resolve consumer complaints and to establish meaningful provisions that are designed to ensure that people who do business with these companies are not defrauded.”

The State’s complaint, filed in January 2003, alleged that the defendants violated New Jersey’s Consumer Fraud Act by deceiving consumers who ordered merchandise usually in response to television infomercials. GT Brands, GT Direct and/or GoodTimes Entertainment manufacture, advertise and/or distribute a variety of consumer products, including the Turbo Cooker cooking pans and accessories; The FIRM exercise products; Richard Simmons weight loss and exercise products; Charlton Heston Bible videotapes and audiotapes; Cableflex exercise system; and Leslie Sansone exercise products. The companies have a principal place of business in New York, but have maintained principal business addresses in Jersey City.
“This case demonstrates our resolve to protect consumers from unfair and deceptive business practices,” Director Ricketts said. “When we bring a case under any of our consumer protection laws our goal is always to restore to consumers what they have lost. This agreement does that and helps to shield others from fraudulent practices.”

Deputy Attorney General Lorraine K. Rak of the Division of Law handled this case for the State.

GT Brands, GT Direct and GoodTimes Entertainment have agreed to refrain from, among other things:

• sending to and charging a consumer for merchandise that the consumer never agreed to purchase;

• charging a consumer for merchandise that is never sent to the consumer;

• providing a consumer’s credit or debit card account information to third-party marketers, without the consumer’s authorization;

• representing that merchandise has an “unconditional money back guarantee” or otherwise representing to consumers that they can return merchandise for a full refund (even if partially used) and then refusing to issue a full refund;

• advertising merchandise as “buy one, get one free” and then charging consumers for the “free” merchandise, except for the shipping and handling charges for that merchandise;

• representing that they will send replacement merchandise to consumers who received defective merchandise and then failing to do so.

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