Attorneys general oppose DirectBuy lawsuit settlement

Washington Attorney General Rob McKenna joined the attorneys general of 34 states, the Commonwealth of Puerto Rico and the District of Columbia in objecting Tuesday to the settlement of a private, class-action lawsuit against DirectBuy, Inc., because it offers no real benefit to consumers.

DirectBuy stores are independent franchises that charge thousands to join, as well as yearly fees. Customers are told they can purchase goods from manufacturers and suppliers at actual wholesale cost. The lawsuit (Wilson et al v. DirectBuy, Inc., et al) accused Indiana-based DirectBuy of fraudulent misrepres...