Now, I've heard of DirectBuy, a company that's supposed to allow you to buy stuff cheap. Well, consumer report websites are reporting that the place is a scam. Seemed that way to me from the start, but first hand experience from other consumers is always good. Anyway, get this. DirectBuy got wind that they were being critisized, and threatened the website(s) with legal action if said sites didn't take down the comments. Here's the letter.
Now, the letter also threatens that it can't be posted online. Pfft, I say. Here's a company scamming people, then threatening to sue consumer report websites that warn other people about the scam. How amusing is that?
Anyway, here's a link to the site where I pulled some of this information from. It's good read, and the information is pretty useful.
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DirectBuy Sued!
A federal lawsuit has been filed in U.S. District Court in Hartford against the national high-end DirectBuy franchise operation, accusing it of falsely telling prospective clients that they are getting furniture, appliances and other household products at manufacturer prices. In a lawsuit filed by attorney Seth R. Klein of Hartford, DirectBuy is accused of hiding the fact that DirectBuy receives rebates from manufacturers which are not directly passed on to their members, who pay as much as $7,000 to join for two or three years. The lawsuit, which seeks to be certified as a class action representing thousands of present and former members of the more than 100 franchises, was filed earlier this month. It follows a column on DirectBuy that disclosed the rebates, which are kept secret from its members and from those it entices to join through high pressure sales techniques.
DirectBuy officials had no comment on the suit but had said earlier that it uses the millions of dollars it received in rebates to the benefit of its members. We will see what a jury has to say about that.
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