TRENTON, NJ- A settlement has been reached with TFG Holding, Inc., addressing deceptive practices in its VIP Membership Program. The multistate coalition secured a $1 million settlement aimed at rectifying misleading membership charges imposed on consumers.
Seventy-six New Jersey consumers are expected to receive an average refund of $2,463. The settlement stems from claims that TFG Holding marketed its membership program misleadingly and complicated the cancellation process for consumers.
Attorney General Matthew J. Platkin stated that the company prioritized profits over transparency. He emphasized the need for consumers to trust the deals they receive in the marketplace.
Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs, reinforced consumers’ rights to be fully informed about their purchasing commitments. TFG Holding offered discounts to consumers who enrolled in its VIP Membership Program, which carried a monthly fee of $49.95 unless specific actions were taken by the 6th of each month.
This practice resulted in some consumers incurring hundreds to thousands of dollars in membership fees. Those who enrolled before May 31, 2016, and only made an initial purchase without further engagement will automatically receive refunds.
The settlement outlines multiple violations of state consumer protection laws, including misleading pricing and unauthorized enrollment in membership programs. TFG Holding will now be required to comply with various legal mandates, including transparent disclosure of membership terms and obtaining explicit consent for enrollment.
The Attorney General’s office intends to ensure that consumers are treated fairly and that deceptive practices are addressed. TFG Holding will also face restrictions against using tactics that create false urgency in sales.
As part of this agreement, the company must create an online cancellation mechanism for its VIP Membership Program and address consumer refund requests promptly.
The settlement negotiations included participation from several states in addition to New Jersey, including Texas, Maryland, and Pennsylvania. Deputy Attorney General Amanda McElfresh led the efforts on behalf of New Jersey’s Consumer Fraud Prosecution Section.