The Federal Trade Commission (FTC) recently settled with Hispanic Global Way, Inc., over allegations that it was targeting Spanish-speaking consumers, sending defective or incorrect products, and refusing to refund consumers’ money when they complained. The company has agreed to discontinue telemarketing and selling weight-loss products.
According to the FTC complaint, Hispanic Global Way used Spanishlanguage TV ads and Peruvian call centers to sell its products. They shipped incomplete orders and wrong or defective products. When consumers called to complain, the telemarketers reportedly ignored or insulted the callers, told them they could not return or exchange products, or that they would have to pay an exchange fee ranging from $20 to $299. Under the settlement order, the company must provide refunds or exchanges, free of charge, for incorrect or non-working products sold in the future. Hispanic Global Way is also barred from making material misrepresentations about goods and services and must disclose, before making a sale, any restriction or condition on a refund, cancellation, repurchase or exchange. The settlement order imposes a $50-million judgment that will be suspended upon surrender of all of the defendants’ significant assets.