NYS AG Reaches Settlement with SAS Group, Inc.

SAS Group Inc. entered into an agreement with the New York State Attorney General’s Office regarding advertisements shown between January 1, 2008 through May 31, 2008 through infomercials and Internet sales on many large volume direct-market products, including: Dream Lash, EZ Bundler, Grease Lifter, Cyclone, Magic Boutique, Toobers & Zots, Hydralure, Smart Lidz, Bedazzler, Floam, Awesome Auger and the Samurai knife sharpener. The Attorney General’s investigation found that the Awesome Auger and the Samurai knife sharpener constitute approximately 66 % of SAS Group’s total gross sales revenue.

The investigation by the Attorney General’s Office revealed that SAS Group Inc. failed to sufficiently disclose all shipping and handling charges, failed to sufficiently disclose that shipping and handling charges were charged on a per-item basis rather than a per-order basis, advertised items as “free” without alerting consumers at the outset that the offer required additional shipping and handling costs, failed to provide consumers with a clear method by which to opt-out of a pending telephone purchase, failed to disclose in a single aggregate figure the total costs and quantity of the items purchased before the consumers paid them, and submitted billing information for payment without express final authorization.

The New York State Attorney General has determined that the advertising methods utilized by SAS Group during its investigation were misleading and deceptive. SAS Group Inc. neither admits nor denies the New York Attorney general’s findings and cooperated fully in the investigation.

Under the agreement, SAS has agreed to reform its practices and pay $125,000 in civil penalties, fees and costs, plus an additional $75,000 to cover restitution payments to consumers and the costs of engaging an administrator to oversee the process. The Better Business Bureau of Metropolitan New York, Inc. (BBB) is administering the restitution process. The total amount of restitution shall not exceed $200,000.

Restitution shall be paid to each SAS Group customer that was affected by the practices of the company, and (1) whose complaint is on file with the Attorney General’s office and who supplies any additional documents, if requested; or (2) who files a written substantiated complaint with SAS Group, the Administrator of the fund, or the New York State Attorney General’s Office postmarked by September 9, 2010.

The Administrator will provide refunds to eligible consumers whose substantiated complaints meet any one of the violations by the company. To qualify, a consumer must submit a written complaint, with documentation in the form of a sales receipt, an invoice, a canceled check, copy of a credit card receipt, other receipt reflecting proof of purchase, and/or any other form of written documentation that is satisfactory to the Administrator. The Administrator will review claims, make a determination, and make payments from the fund. Refunds will be for the cost of shipping and handling for the “free” item and or item purchased as an “up-sell.” Any consumer that has previously received reimbursement for the shipping and handling costs are not eligible.

To submit a claim, please contact the administrator of the fund at:

Better Business Bureau of Metropolitan New York
ATTN: SAS Restitution Fund
30 East 33^rd Street, 12^th Floor
New York, New York 10016

All claims must be postmarked by September 9, 2010.