Telebrands to Pay $800,000 to FTC

Telebrands Corp., Fairfield, NJ, will pay the Federal Trade Commission $800,000 to settle a lawsuit alleging that the firm violated a 1996 agreement to abide by the FTC’s mail order and telemarketing rules. The settlement also requires that the firm, which admitted no wrongdoing, hire an independent agent to monitor company operations and file periodic reports with the court. A.J. Khubani, president of Telebrands, had not responded to calls for comment at press time. Three years ago, Telebrands paid $95,000 in civil penalties to settle allegations that it failed to fill customer orders promptly, notify customers about fulfillment delays and pay refunds on canceled orders. The FTC alleged that Telebrands failed to live up to the terms of the 1996 settlement agreement.