NEW YORK (1010 WINS) — A direct sales kitchenware company popular in predominantly Spanish-speaking communities will have to pay $300,000 in fines for failing to clearly disclose their refund policies, the New York Attorney General’s Office announced Tuesday.
Wisconsin-based Hy Cite Enterprises, which owns the brands Royal Prestige and Kitchen Charm, uses door-to-door marketing to sell their line of kitchen-related tools including pots and pans. Many of their distributors are in the Spanish-speaking NYC communities of Bushwick, Marble Hill, Highbridge, East Tremont, Kingsbridge Heights and Concourse.
The Attorney General’s Office was receiving multiple complaints from New Yorkers who were not able to return products they purchased. The company routinely told customers they only had three business days to return products despite the Door-to-Door Sales Protection Act requiring companies to give consumers 20 days to return items if the company does not have a refund policy.
An investigation was launched by the AG’s office which found Hy Cite contracts failed to clearly disclose any refund policy and the company denied customers the ability to make returns within the 20-day timeframe.
“My son and I bought juicers, but when they arrived, one was missing a piece. It didn't work, but we were not able to return it because they didn’t have an adequate return policy,” said Juana García, an impacted customer. “My son ended up paying for the whole thing plus a lot more because of the very high interest he was charged. I'm glad to hear that the Attorney General’s office has reached this agreement to hold this company accountable for what they did to families like mine.”
Under an agreement with the state, Hy Cite will be required to allow eligible customers who bought items between August 1, 2018 and October 31, 2022 who wanted to return their products within 20 days of purchase to return them for either a cash refund or exchange for new products, depending on the condition of the products returned.
The company will also include a 20-day refund policy on its New York sales order forms for at least three years and requires Hy Cite, not its distributors, to collect consumer payments.
“Hy Cite misled consumers to beef up their profits and today they are paying for their wrongdoing,” said Attorney General Letitia James. “They targeted Spanish-speaking communities and refused to let them return products after they were pressured into buying them. I urge eligible consumers who tried to return a product within 20 days of making a purchase, but were denied, to contact my office. We will continue to use the full force of our office to protect New Yorkers’ wallets from companies that disregard the law.”
Anyone who purchased items between August 1, 2018 and October 31, 2022, and who were denied a refund within 20 days of purchase should file a complaint online with OAG’s Consumer Frauds and Protection Bureau or call 1-800-771-7755. Hy Cite is also required under the settlement to review its records and notify eligible consumers by January 30, 2023.
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