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AG: Conn's Misled Customers

Appliance Retailer Charged With Multiple Violations

POSTED: Thursday, May 28, 2009
UPDATED: 6:21 pm CDT May 28, 2009

Texas Attorney General Greg Abbott has charged an appliance giant with failing to honor product warranties, misleading customers about the nature of its products, false advertising and other violations of the Texas Deceptive Trade Practices Act.

The action was taken against Conn's after more than 2,000 customer complaints were filed.

Conn's has been accused of unlawfully relying on aggressive and deceptive sales tactics to increase its extended warranty sales for consumer appliances, electronics and other products.

"The defendants are charged with using high-pressure sales tactics to deceive customers about their extended service warranties," Abbott said.

Conn's brochures for warranties clam that purchasers are protected for two years from the date of purchase, but Abbott said customers did not actually receive two-year warranties. The Conn's warranty agreement stated that it did not cover any time under the manufacturer's warranty, typically one year, so the extended warranty did not actually begin at the time of purchase.

The retailer has been accused of telling its sales personnel to rely on high-pressure tactics to persuade customers who declined the warranty into purchasing it. A sales manual, which was marked "not to be distributed to customers" said sales personnel should create a sense of urgency and by "painting a picture in the customers [sic] mind, calling up that sickly feeling we all get in the pit of our stomachs when something goes wrong."

If you have a complaint against Conn's practices, the Texas AG's office would like to hear from you. You can call them at 1-800-252-8011 or file a complaint online. As a part of the lawsuit, the AG is seeking restitution for consumers who may have been sold defective products or warranties that were not honored.

The state's enforcement action seeks civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practice's Act and a $250,000 penalty if the conduct financially harmed persons aged 65 or older.

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