Attorney General James Secures $300,000 from Cookware Company for Misleading Consumers about Their Refund Policy

 

Royal Prestige Cookware and other Hy Cite Brands Targeted Latino Communities and Refused to Let them Return Expensive Products

New York Attorney General Letitia James today secured $300,000 from a cookware company, Hy Cite Enterprises, LLC (Hy Cite), for failing to clearly disclose their refund policies in their contracts with thousands of consumers in predominantly Spanish-speaking communities throughout the state. Hy Cite, which owns the brands Royal Prestige and Kitchen Charm and uses door-to-door marketing, told customers they only had three business days to return products when they tried to make returns. However, the Door-to-Door Sales Protection Act requires companies that do not have a refund policy to give consumers 20 days to make a return on door-to-door sales. The Office of the Attorney General (OAG) found that Hy Cite’s contracts failed to clearly disclose any refund policy and did not allow consumers to make returns within the 20-day timeframe. As a result of today’s agreement, Hy Cite must pay a $300,000 penalty and offer refunds to eligible customers who were previously denied a cancellation when they tried to make a return within 20 days of their purchase.

“Hy Cite misled consumers to beef up their profits and today they are paying for their wrongdoing,” said Attorney General James. “They targeted Spanish-speaking communities and refused to let them return products after they were pressured into buying them. I urge eligible consumers who tried to return a product within 20 days of making a purchase, but were denied, to contact my office. We will continue to use the full force of our office to protect New Yorkers’ wallets from companies that disregard the law.”

Hy Cite sold pots, pans, and other kitchen-related goods through door-to-door marketing by distributors in predominantly Spanish-speaking neighborhoods, including Bushwick, Marble Hill, Highbridge, East Tremont, Kingsbridge Heights, and Concourse. The OAG opened an investigation into Hy Cite after receiving complaints from New Yorkers who were unable to return purchased products.

The OAG found that Hy Cite did not have any stated refund policy and instead only told consumers they have three business days to cancel their purchase, a violation of the Door-to-Door Sales Protection Act. The law requires companies to have a refund policy and a three-day notice of cancellation. Companies that do not have a refund policy are required to allow consumers 20 days to return their products.

Today’s agreement requires Hy Cite to allow eligible consumers, who purchased goods between August 1, 2018 and October 31, 2022, and who had wanted to return their products within 20 days of purchase, to return them for either a cash refund or exchange for new products, depending on the condition of the products returned. In addition, the agreement requires Hy Cite to include a 20-day refund policy on its New York sales order forms for at least three years and requires Hy Cite, not its distributors, to collect consumer payments. Hy Cite must also pay $300,000 in penalties to the state.

Individuals who purchased goods between August 1, 2018 and October 31, 2022, and who were denied a refund within 20 days of purchase should file a complaint online with OAG’s Consumer Frauds and Protection Bureau or call 1-800-771-7755. Hy Cite is also required under the settlement to review its records and notify eligible consumers by January 30, 2023.