National corporation pays $1.35 million and drastically reforms its business to resolve State charges that it used fraudulent and discriminatory practices

Hy Cite Corporation, which sells cookware and water filters under the name of Royal Prestige, will pay $1.35 million for victim restitution and penalties and will drastically reform how it does business to resolve State charges that it lied to consumers to scare them into paying several thousands of dollars each for cookware or water filters. Hy Cite also settled charges that it discriminated against “Hispanic” customers by setting up harsher cancellation and financing policies for them than for “Anglo” customers.

A lengthy investigation by the Los Angeles County Department of Consumer Affairs prompted the California Attorney General’s Office to sue Hy Cite. This is the second time the Attorney General charged the Madison, Wisconsin-based Corporation for similar complaints.

The lawsuit charges that Hy Cite salespeople lied their way into the homes of consumers, and once inside used deception and high pressure to scare consumers into buying their cookware.

Click here and here for the announcements from 2009.

For more information, our Consumer Services Division at (800) 593-8222 or (213) 974-1452.