Steve Brown’s company pays penalty and agrees to reform

U.P.I.

January 16, 1992, Thursday

Mail order company agrees to reform

NEW YORK

One of the country’s leading mail-order companies has agreed to reform its sales practices and speed up its refunds, state Attorney General Robert Abrams reported Thursday.

Abrams said more than 3,000 customers had complained to his office about Raffoler Ltd., of Westbury, Long Island.

He said the company, which does almost $200 million a year in mail-order business, had misrepresented the quality of its merchandise and the value of sweepstakes prizes offered to induce sales.

Many customers were kept waiting months for merchandise, he said.

The settlement requires the company to make significant changes in its advertising copy and sweepstakes solicitations and forbids the firm to make false claims about itself, its merchandise and its prizes that were made in the past.

The agreement also requires Raffoler to make sweeping reforms in its order fulfillment and complaint processing practices and mandates that the company honor all valid refund requests from consumers within 30 days.

It also allows customers with existing complaints about Raffoler products to claim refunds, he said, and requires the company to pay the state $175,000 for costs of the state investigation.

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