Allstar Products Reaches Settlement with FTC and NY Attorney General

Allstar commits to continue to enhance customer support; agrees to fund a refund pool for certain past customers

HAWTHORNE, NEW YORK, Allstar Products Group (“Allstar”), a leading consumer products company that uses direct response advertising to bring quality products and brands to consumers, today announced that it has signed agreements with the Federal Trade Commission (FTC) and the New York Attorney General’s office to resolve a compliance inquiry. 

In coordination with the FTC and the NY Attorney General’s office and in an effort to enhance the consumer ordering and customer service experience, Allstar agreed to provide multiple opportunities for customers to confirm their orders before placing them and to clarify ordering and return procedures. While Allstar’s online and phone sales processes have always been clearly disclosed to the consumer, the changes announced today will set a new benchmark for enhanced consumer experiences.

“Allstar is pleased to have resolved this matter, and we’re proud that it resulted in positive change for our company. One of our goals has always been to provide a positive purchasing experience for our customers,” said Jennifer De Marco, General Counsel at Allstar. “While we have always believed our processes complied with the law, we are proud to have successfully worked with the FTC and the NY AG to improve them and set new standards for transparency.”

Peter Marinello of the Electronic Retailing Self-Regulation Program stated, “Allstar’s settlement with the FTC provides important guidance on how all companies in the electronic retailing industry should deal with the disclosure of offer details to their customers.  As tangibly demonstrated by its long time support for the ERSP program, the electronic retailing industry has shown an outstanding commitment to treating its customers fairly and truthfully.  This settlement provides guidance that all electronic retailers can use to deliver on that commitment and improve the customer’s experience.”

President and CEO of the Electronic Retailing Association Julie Coons reaffirmed, “Allstar’s settlement with the FTC provides important guidance on how companies in the direct response industry should deal with the disclosure of offer details to consumers, and ERA urges its members to review this guidance moving forward to improve the customer experience.”

Allstar resolved the inquiries from the FTC and the New York Attorney General by agreement and without any finding that Allstar violated any laws. The company agreed to establish a $7.5 million fund for providing additional refunds to certain past customers, which will be administered by the FTC. The agreement will not have an adverse impact on the company’s operations or services in any way. 

 

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