Liquidation Channel Complaints: Could the Company Be Sued Over False Advertising?

Attorneys are investigating whether customers who purchased jewelry, accessories and other items from the Liquidation Channel may be able to file a class action lawsuit against the home shopping program. Dozens of customers have complained that the Liquidation Channel falsely inflates the estimated retail value of its jewelry, with some claiming that the items they received were vastly undervalued and may even contain fraudulent stones. Furthermore, many customers have complained that they will never see the money they spent on these undervalued or defective pieces again because the Liquidation Channel has a strict “no returns” policy for items less than $200.

Complaints About the Liquidation Channel Posted Online

On a number of websites, including Yelp, RipoffReport and the Better Business Bureau, dozens of Liquidation Channel customers have voiced their complaints about the quality and value of the items they received. They claim that the company’s purported “estimated retail values” are extremely misleading. Some of their complaints can be read below.

“[T]his company lists retail prices for their auction items, which are another complete RIPOFF. I have been in the jewelry business for 40 years and have never seen, nor ever sold, similar items for anywhere near the suggested retail prices this company claims.” – Customer in Belle Vernon, PA

“CHEAP jewelry advertised as expensive jewelry. Bid [and] won on a necklace advertised as an $80 necklace. I wouldn’t have paid $1 for it if I had viewed it in a store.” – Customer in Richmond, VA

“[T]heir Manufacturer Suggested Retail Price [MSRP] is outrageously ridiculous. The rings I purchased for approximately $35 each were suggested to be worth 10 times that much. They actually post those MSRPs with each item they sell and tell you that you are getting the pieces at 90-97% off full retail. Bottom line, you get what you pay for, or less.” – Customer in Virginia Beach, VA

Additionally, many customers claimed that the pieces they received appeared to contain fraudulent stones, were not sterling silver as the company claimed, or were otherwise different than advertised on television or the Liquidation Channel’s website.

Lawsuit: Jewelry Television Targeted over Misleading Estimated Retail Values, Fake Gemstones

In 2008, a class action lawsuit was filed against Jewelry Television, a home shopping program similar to the Liquidation Channel. In the lawsuit, the plaintiff claimed that Jewelry Television created an artificially inflated demand for its “andesine-labradorite” gemstones by claiming that they were “highly-coveted, [sic] extremely rare, all natural [and] expensive.”

According to the plaintiff, Jewelry Television said a single carat of the andesine-labradorite stone jumped from $2,000 to $3,000 in one week and that it had the largest supply of what could become “the most rare gemstone on the face of the planet.” In addition, the company continually changed the prices of its andesine-labradorite gemstones to trick customers into believing that they were getting great deals, according to the suit. In December 2007, for instance, the company advertised one carat andesine-labradorite stones for $149, three carat stones for $689 and four carat stones for $919. Yet, one month later, Jewelry Television advertised one carat pieces for just $49 and $79.

A slew of customer complaints accused Jewelry Television of selling fraudulent stones and the company later admitted that its andesine-labradorite was actually low-cost Valspar that had been treated to appear as if it was genuine and expensive stone. As a result, Jewelry Television allegedly “obtained its sham product for pennies per carat and sold it for extraordinary profits,” according to the lawsuit.

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