Craftmatic Settles with Florida AG over Sales Tactics

Posted on by Chief Marketer Staff

Craftmatic, maker of electronic adjustable beds, has agreed to pay $100,000 in consumer restitution and alter its sales tactics under a settlement with Florida’s state attorney general, it was announced last week.

The settlement ends an investigation into Craftmatic’s sales tactics that began in 2004. Craftmatic admitted no wrongdoing.

According to Florida Attorney General Bill McCollum, his office received more than 60 complaints about Craftmatic during the investigation, many from elderly Floridians who said they had been pressured into buying beds they did not want and could not afford.

“Salespeople should never be permitted to harass elderly Floridians, especially when consumers are made to feel as though the only way to evict the salespersons from their homes would be to purchase these beds,” said McCollum in a statement.

As part of the settlement, Craftmatic will also pay $20,000 to the non-profit Seniors vs. Crime program, according to McCollum. The company will also reportedly pay more than $50,000 to the attorney general’s office to cover the costs of the investigation.

Also under the agreement, Craftmatic’s sales representatives cannot tell people the beds offer any specific therapeutic benefit, and must refrain from high-pressure sales tactics, according to McCollum.

In 2005, Craftmatic made a similar settlement with the state of Ohio, under which it agreed to pay $425,000 in restitution and fees.

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