– The Division of Consumer Affairs and
Dr. Leonard’s Healthcare Corp., an Edison-based
company that allegedly charged consumers optional
service fees via telephone without express
authorization and made misrepresentations
about the efficacy of merchandise, have reached
an agreement under which the company will
pay $35,023 to conclude the Division’s
investigation without the need for further
Division began its investigation of the
company after receiving complaints from
consumers, who said they were unaware that
they would be enrolled in a paid membership
after a free trial period ended unless they
called to cancel membership beforehand.
Leonard’s Healthcare, which also does
business as Dr. Leonard’s, Carol Wright
Gifts, DRL Healthcare Corp., and Healthcare
Direct, Inc., will donate $22,500 to a charitable
organization that promotes recycling, under
terms of the settlement. The balance of
$12,523 will pay for reimbursement of the
state’s investigative and legal costs.
part of the settlement, the company is required
to obtain a consumer’s express authorization
before the consumer buys any merchandise
that involves a recurring order. Also, under
the terms of the settlement, the company
must notify consumers at least 30 days prior
to charging them for their recurring orders.
settlement ensures that consumers know that
they are enrolling into a paid program after
the free trial ends. Any ambiguity will
be eliminated through the disclosures required
in this settlement,” said Eric T.
Kanefsky, Acting Director of the State Division
of Consumer Affairs.
Leonard’s Healthcare did not admit
to violating any consumer protection law
in agreeing to the settlement.
Attorney General Jah-Juin Ho of the Consumer
Fraud Prosecution Section within the Division
of Law represented the Division of Consumer
Affairs in this matter. Investigator Aziza
Salikhov of the Cyber Fraud Unit within
the Division’s Office of Consumer
Protection conducted the investigation.
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website or by calling 1-800-242-5846
(toll free within New Jersey) or
the Division of Consumer Affairs on Facebook,
and check our online calendar of upcoming