NEWARK, N.J. (Legal Newsline) - New Jersey Attorney General Jeffrey Chiesa announced an agreement on Monday with an Edison-based company resolving allegations that it charged consumers optional service fees via telephone without authorization.
Dr. Leonard's Healthcare Corp. -- doing business as Healthcare Direct Inc., DRL Healthcare Corp., Carol Wright Gifts and Dr. Leonard's -- also allegedly made misrepresentations about the effectiveness of its merchandise.
Under the terms of the agreement, Dr. Leonard's Healthcare will pay $35,023 to conclude the matter with the Division of Consumer Affairs.
The DCA began looking into Dr. Leonard's Healthcare after receiving consumer complaints alleging that the company enrolled consumers in a paid membership after a free trial period unless they called to cancel membership beforehand. The company will donate $22,500 to a charitable organization that promotes recycling. The remaining $12,523 will reimburse the state for legal costs.
As part of the agreement, the company must obtain a consumer's express authorization before selling any merchandise connected to a recurring order and the company must supply customers with notifications at least 30 days prior to charging them for recurring orders.
Dr. Leonard's Healthcare did not admit to any violations of consumer protection law under the terms of the settlement.