A court order has been issued against two New York-based individuals settling Federal Trade Commission allegations that they ran a company that took millions of dollars by promising rebates to consumers that were never paid.
Joel Granik and Joseph Lichter allegedly operated Cyberrebate.com, now in bankruptcy, where they sold products marked up to 10 times the retail value, but failed to pay the “100 percent” rebate promised to purchasers, the FTC said Tuesday.
The defendants were permanently barred from offering certain types of rebates in connection with the sale of any product and will pay $40,000 to the U.S. Treasury. The business was operated out of Valley Stream, NY.
“Companies can’t use rebates to bait consumers with the promise of cash back and then not live up to their end of the bargain,” said Lydia Parnes, acting director of the FTC’s Bureau of Consumer Protection, in a statement.
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