Adjustable Bed Manufacturer gets Massive Fine
February 4th, 2009Craftmatic Pays Fine for Violating Do Not Call List
Nobody likes to get a telemarketing call and it always seems that they call as soon as you sit down to eat. This is one of the reasons that more than 150 million Americans have signed the do not call list, which represents over half of the population of the United States.
The do not call list is a program that is set up by the federal government to keep telemarketers from calling. It is run by the Federal Trade Commission and since this programs introduction five years ago, thirty-five companies have been taken to court and more than $15 million in fines has been issued.
Craftmatic has received many complaints about their products and service. This includes countless customer complaints about salesmen lying to get sales and not honoring warranties on their products. Many people have also complained about the quality of their products, faulty equipment, outright lies about their products, and extremely aggressive high pitch sales practices.
This is not limited to only the United States, but customers in Europe have also had similar bad experiences when using Craftmatic.
There have also been investigations for Craftmatic Fraud, in which they ended up settling for over half a million dollars. This was after a high number of complaints against the sales tactics used by Craftmatic, including visiting elderly peoples homes, gaining access to their homes, and then proceeding to stay for hours as they used incredibly manipulative high pressure sales tactics. Rather than face the courts judgment in this case, they chose to settled with the more than 450 people that filed suit against them.
The practices of their salesmen are also a consistent factor listed by most customers. Overly zealous telemarketers and outright violations of the do not call list has finally caught up with Craftmatic though. They have been fined almost $4.5 million dollars for their repeated violations of the do not call list. To date they are the second largest violator of the do not call list.
One of the ways Craftmatic violated consumer rights is by using a sweepstakes to get customers phone numbers. They offered the chance of winning a new Craftmatic bed to consumers. The customers were told that their phone number was going to be used to track the sweepstakes. Craftmatic then proceeded to repeatedly call and perform high pressure sales pitches on the people that entered the sweepstakes. The customers did not consent to being called. Craftmatic also failed to honor a do not call list that was developed solely to protect customers from Craftmatic’s business practices.