NEW YORK – A New York cookware company will be fined $ 300,000 for failing to clearly disclose its refund policies in its contracts with thousands of consumers in predominantly Spanish-speaking communities across the state, Attorney General Letitia James .
The company Hy Cite Enterprises, LLC (Hy Cite)owner of the brands Royal Prestige and Kitchen Charm and which uses the marketing door-to-door, he told customers that they only had three business days to return the products when they attempted to make returns. However, the Door-to-Door Sales Protection Act requires businesses that don’t have a refund policy to give consumers 20 days to make a return on door-to-door sales.
The Attorney General’s Office (OAG) found that Hy Cite’s contracts clearly did not disclose any refund policy and did not allow consumers to make returns within the 20-day period. As a result of the agreement, Hy Cite must pay a $ 300,000 penalty and offer refunds to eligible customers who were previously denied cancellation when they attempted to return within 20 days of purchase.
Hy Cite sold pots, pans and other kitchen products through door-to-door marketing from distributors in predominantly Spanish-speaking neighborhoods, including Bushwick, Marble Hill, Highbridge, East Tremont, Kingsbridge Heights, and the Concourse. The OAG opened an investigation into Hy Cite after receiving complaints from New Yorkers that they were unable to return purchased products.
The Attorney General’s Office found that Hy Cite did not have a refund policy in place and instead only told consumers that they had three business days to cancel the purchase, a violation of the Door-to-Door Sales Protection Act. The law requires companies to have a refund policy and a three-day cancellation notice. Companies that don’t have a refund policy must give consumers 20 days to return their products.
Who can receive the refund thanks to the agreement
The agreement requires Hy Cite to allow eligible consumers who purchased products between August 1, 2018 and October 31, 2022 and who wanted to return their products within 20 days of purchase, return them for a cash refund, or exchange them for new products, depending on the status of the returned items.
Additionally, the agreement requires Hy Cite to include a 20-day refund policy on New York sales order forms for at least three years and requires Hy Cite, not its resellers, to collect payments from consumers. Hy Cite also has to pay $ 300,000 in state fines.
How can I file a complaint if I have been hit?
People who purchased products between August 1, 2018 and October 31, 2022 and were denied a refund within 20 days of purchase, must file a complaint online with the OA Office for Fraud and Consumer ProtectionG or call 1-800-771-7755. Under the agreement, Hy Cite is also required to review its records and notify eligible consumers by January 30, 2023.
“Hy Cite misled consumers into increasing their profits and today they are paying for their misconduct,” Attorney General James said. “They targeted Spanish-speaking communities and refused to allow them to return the products after they were pressured to buy them. I invite consumers who have attempted to return a product within 20 days of purchase but have been denied to contact my office. We will continue to use the full strength of our office to protect New Yorkers’ wallets from companies that break the law. “
