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The Honolulu Advertiser
Updated at 10:46 a.m., Thursday, February 21, 2008

Hawaii to get $29K in deceptive marketing settlement

Advertiser Staff

Hawai'i will receive $29,000 as part of a settlement agreement with a direct marketer of women's hosiery that was accused of deceptive marketing practices.

The state Office of Consumer Protection said Hawai'i and 14 other states will be paid a total of $455,000 by HCI Direct Inc., a Pennsylvania company that sent direct-mail solicitations across the nation. Consumers who accepted the offer of a free sample were automatically enrolled in the company's continuous sales plan, the state said.

Under the plan, if a consumer failed to contact the company to cancel, payment by the consumer for one shipment would trigger another shipment. The lawsuit against HCI alleged the program violated consumer laws by failing to "clearly and conspicuously disclose all of the material terms and conditions," the state said.

The state said the $29,000 will be used to fund consumer education and enforcement of consumer protection laws in Hawai'i.

Anyone with questions regarding this settlement should contact the state's Consumer Resource Center at 587-3222 or toll-free at 1-800-394-1902.