Attorney General Reaches $500K Settlement with DirectBuy

Attorney General Eric Schneiderman announced that his office has reached a $500,000 settlement with DirectBuy after an investigation revealed the buying club engaged in misleading and deceptive sales practices.

Members of the Indiana-based company pay a fee, which entitles them to buy merchandise like furniture, appliances and home goods directly from the manufacturer and its authorized suppliers. The Attorney General’s investigation found that the company used deceptive tactics to induce consumers to purchase memberships costing thousands of dollars, and then failed to deliver on the savings.