Florida is suing Savannah-based Friedman’s Inc. retail jewelry chain, alleging it sold millions of dollars worth of insurance on jewelry items but didn’t disclose the costs to consumers.
Friedman’s, which has 56 stores in Florida among its 650 stores nationwide, allegedly sold $46.7 million worth of the insurance in 19 states. The insurance sold to customers who finance their purchases.
Florida Attorney General Charlie Crist estimates that between 1998 and 2002 the company collected more than $2.3 million in Florida. According to the complaint Friedman’s added charges to retail contracts for life, credit disability and property insurance. It allegedly collected $46.7 million from the 19 states combined.
The company allegedly added the insurance amount to the total price of retail installment contracts without obtaining consumers’ signatures to authorize the transactions.
Friedman’s is charged with violating Florida’s Deceptive and Unfair Trade Practices Act. The lawsuit seeks an injunction prohibiting the company from engaging in deceptive and unfair business practices, full restitution to consumers and penalties of between $250,000 and $1 million in Florida.
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