McCollum sues electronic merchandise company

Ashley Stinnett Sep. 9, 2009, 4:23pm


TALLAHASSEE, Fla. (Legal Newsline) - Florida Attorney General Bill McCollum on Friday filed a lawsuit against a Delaware-based company over allegations the business violated the state's Deceptive and Unfair Trade Practices Act.

The lawsuit claims Systemax and its subsidiaries, Tigerdirect and Onrebate cheated customers out of rebate payments by failing to pay advertised rebates to consumers.

A state investigation that began in 2007 revealed the company allegedly offered and advertised products with rebate incentives falsely informing consumers that they would receive rebates no later than 10 weeks, McCollum said.

Shortly after, McCollum's office began receiving complaints from consumers claiming the company's rebate program was too difficult to navigate leaving many customers without rebate returns.

As a result, the company allowed some rebates to expire. Consumers also complained the company put them on hold for over an hour only to be told their rebates would not be processed.

In some instances, rebates were haphazardly process resulting in refunds being terminated, McCollum said.

The state is seeking a permanent injunction against Systemax and its subsidiaries which would prevent them from denying rebates to qualifying consumers.

McCollum is also seeking full restitution to consumers, reimbursement for attorneys and court fees and civil penalties.

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