3/5

posted Jul-02-2010
Although this company is currently defunct, I figured the entry here should get a proper burial/explanation; some closure considering the amount of customer outrage.
I've ordered from them twice: the first time via Amazon.com, and the second time via their site (where I used Paypal). In both instances, I've never had any problems, so I might consider myself lucky. With sales "via Amazon", I heard from a different vendor that they never know the customer's email address when orders are placed, so I'm guessing that they never find out your CC number either. And with Paypal, you'll always have some semblance of security with any transaction.
The items from ClassicCloseouts were sometimes on the cheap end for materials used, but it was usually a hit or miss. (I never had any reason to return stuff, and am still making good use of my purchases--albeit not exactly in their intended ways.)
Nevertheless, I was considering ordering from them again late 2009 to hit up their "secret 20% off for the 20th" deal, but when I got around to checking their website, I found the server's empty Plesk cpanel, i.e., "this domain doesn't exist".
I rechecked my email logs and found that they stopped sending out their sales mail after the 27th of July. I thought, "How odd that I didn't even receive any information about this."
After poking around, I found these bits at the Federal Trade Commission's site:
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July 1, 2009
Federal Trade Commission v. Classic Closeouts, LLC, a limited liability company, also d/b/a Classiccloseouts.com, Daniel J. Greenberg, individually, as an officer of Classic Closeouts, LLC, and d/b/a Thirdfree.com
(United States District Court for the Eastern District of New York)
Civil Action No. 09-CV-02692
FTC File No. 082 3236
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For Release: 07/01/2009
FTC Cracks Down on Scammers Trying to Take Advantage of the Economic Downturn
New Public Education Video Helps Consumers Steer Clear of Business Opportunity Fraud
The Federal Trade Commission today announced a law enforcement crackdown on scammers trying to take advantage of the economic downturn to bilk vulnerable consumers through a variety of schemes, such as promising non-existent jobs; promoting overhyped get-rich-quick plans, bogus government grants, and phony debt-reduction services; or putting unauthorized charges on consumers’ credit or debit cards.
Dubbed “Operation Short Change,” the law enforcement sweep announced today includes 15 FTC cases, 44 law enforcement actions by the Department of Justice, and actions by at least 13 states and the District of Columbia.
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Operation Short Change: FTC’s Law Enforcement Actions
The FTC today announced that it has brought eight new cases against companies that have conned consumers who are struggling to make a living and pay their bills during these difficult economic times. The Commission brought seven additional cases challenging similar conduct earlier this year.
In each new case, the FTC alleged that the defendants’ practices were deceptive or unfair. In some of the cases, the FTC also charged the defendants with making illegal electronic funds transfers or violating the Telemarketing Sales Rule.
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In the law enforcement actions announced today, the Commission charged:
John Beck/Mentoring of America ...
Wagner Ramos Borges, through a host of front companies, including “Job Safety USA,”...
Grants For You Now and its affiliates and principals operated Web sites such as grantsforyounow.com, grantoneday.org, and easygrantaccess.com...
Cash Grant Institute...
Mutual Consolidated Savings...
Google Money Tree...
Penbrook Productions...
Classic Closeouts, illegally made unauthorized charges and debits to the consumers’ accounts months or years after they bought low-cost clothing or household goods from classiccloseouts.com, the FTC charged. The charges usually ranged from $59.99 to $79.99, and Classic Closeouts charged some consumers’ accounts multiple times. Consumers’ efforts to contact the defendants to contest the charges were unsuccessful. Many consumers also disputed the charges with their financial institutions. After the financial institutions reversed the unauthorized charges, the defendants contested these disputes, falsely claiming that consumers had chosen to join the Classic Closeouts “frequent shopper club.” This case was filed in the U.S. District Court for the Eastern District of New York.
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There's no mystery as to what happened, but just a tad unnerving that they were still gung-ho about scamming at the end of July, even with a filed complaint.
FTR, I know this company was horrible, but my rating only reflects my own experiences with them, while ignorant about the illegal activity. I guess they didn't mind being lawful on occasional if only to prove to themselves this: "you win some (with successful scamming), you lose some (because you need to keep up the façade of a legit business--if only to get people to spread good news)."
Fortunately, ResellerRatings wasn't on my mind at the time of the purchases, and if anything, the third-order-that-never-happened may have determined a great deal.

This review was modified by
Bi0NicSQUiD on July 02 2010 10:07:05 AM