Two New Jersey catalog companies Brownstone Holdings, Inc., and Genesis Direct Inc., are being sued in separate jurisdictions for civil fraud by the New Jersey Division of Consumer Affairs, DIRECT Newsline has learned.
Both firms are charged with making false promises to customers about delivery times, shipping orders late or not at all, and failing to make refunds as promised, according to Jennifer Salvato, a spokesperson for the Division of Consumer Affairs.
Brownstone sells women's clothing and accessories through its Brownstone Studio catalogs.
Also named in the suit is parent Lew Magram, Ltd., which acquired the assets of Jean Grayson's Brownstone Studios, Inc. after the latter filed for bankruptcy protection in 1997. Magram assigned the assets to Brownstone Holdings, Inc., which operates out of Magram's offices in Teaneck.
The case is on file with the Bergen County Superior Court in Hackensack.
Genesis, of Secaucus, which has been in Chapter 11 since August, does business over the Internet as Proteam.com. The firm, which sells a variety of merchandise, including sports apparel and collectable toys, is being sued in Hudson County Superior Court, Jersey City.
Officials of both companies could not be reached for comment.
Brownstone is accused of failing to tell customers that merchandise they ordered was not available, and of sending out refund checks without enough funds to cover them, Salvo said. It was unclear at deadline whether the alleged offenses occurred before or after the purchase of the assets by Magram.
Genesis is also alleged to have promised that some orders would be fulfilled within three to 10 business days, but force customers to wait for two to three months for merchandise delivery, noted Salvo. The state suit also accuses Genesis with failing to honor its alleged "unconditional" guarantee on its products.
Salvato said the suits, seeking unspecified consumer refunds and civil penalties of $7,600 for each alleged violation, resulted from nearly 1,000 consumer complaints against the two companies, 546 against Brownstone, and about 400 against Genesis since 1996.
