California Company Used U.K. Web Addresses to Fool Customers

The U.S. Federal Trade Commission (FTC) has instigated legal action against a California company who sold goods to customers in the U.K via websites whose addresses suggested that the goods were being supplied from within the U.K.

Using addresses such as bestpricebrands.co.uk and bitesizedeals.co.uk, Pasadena-based company Balls of Kryptonite sold electrical items to customers in the U.K. who believed that they were buying goods covered by the trading regulations and warranties that were applicable in their own country. Now, in what the Independent is describing as the first case brought against a U.S company whose entire customer base was abroad, the FTC has commenced legal proceedings against Balls of Kryptonite for effectively misrepresenting the services and goods that they could provide to their customers. The Temporary Restraining Order that was filed in the District Court For The Central District of California names a Jaivin Karnani as a co-defendant in the case. The FTC and the Office of Fair Trading (OFT) in the U.K., who acted when consumers started coming to them with complaints about Balls of Kryptonite, worked closely together to make the action in the U.S possible. The need to pay import duties was one of the the problems encountered by U.K customers of the Californian company. Others problems included invalid warranties, goods not matching their website description or goods that could not be used. If consumers wanted to return the goods they were faced with a stringent refund policy and saddled with unreasonable cancellation charges. Mike Haley is the Director of Consumer Protection with the OFT and regarding the case being pursued in the U.S. he commented:

It is important that companies give consumers clear information, including upmost transparency about where they are based to ensure informed purchases online. Prompted by complaints from UK consumers, this landmark legal action shows how international authorities are working closely and we will continue to share intelligence and take action where consumers are potentially misled. However it is also vitally important that when buying goods or services online, consumers also take time to investigate the company, check for feedback and contact information and how to get in touch with a company

The Independent notes that there are possibly as many as 480,000 websites that include co.uk in their address but are actually based outside the U.K., with China said to be the home of many of the firms who own those websites. At present the cost of obtaining a website with a co.uk suffix is only £5 ($8).