Business Crime: Cookware company made outragous claims for its products

Sales representatives employed deception to enter people's homes -- claiming to offer health and nutrition information, to be taking an opinion poll, or to be willing to service the consumer's current cookware.

Once inside the home, the representatives claimed the consumer's cookware caused a variety of diseases such as cancer and Alzheimer's, diabetes and heart problems. The representatives claimed Rena Ware's products were not only safe to use but could actually cure some of these diseases.

Consumers who were persuaded to buy the products were often enticed into financing plans with a rate of more than 21% a year. In late 2008, a Rena Ware International sales representative went to the home of Mercedes Ballestero in Los Angeles. The representative requested an in-home demonstration to show off Rena Ware's products and put to shame Mrs. Ballestero's current cookware. The representative claimed Rena Ware's products could reduce high blood pressure by removing hormones from meat as it cooked. Ms. Ballestero bought a set of Rena Ware cookware for more than USD1,500 with a hidden interest rate of 21.5 percent. After discovering the high interest rate, Mrs. Ballestero cancelled her contract, but the company refused to return her deposit.

The California District Attorney found that Sales representatives often did not tell consumers they had a three day cooling-off-period to change their minds and cancel the order, a right California law guarantees all consumers who buy products from door-to-door salespeople.

Rena Ware sent consumers harassing debt collection notices purportedly signed by an attorney, but no attorney had signed the notices or seen customers' files to verify whether the debts were actually owed. The purpose of the notices was sheer intimidation, it is said.

In an agreement with the AG's Office and other agencies, Washington state-based Rena Ware International, Inc., agreed to pay more than USD600,000 made up as to USD135,400 in penalties, USD250,000 in refunds to consumers and USD239,600 in other costs.

Rena Ware must also obtain an independent monitor to ensure the company refrains from using false information or high-pressure sales tactics to lure customers.

The Rena Ware website says that the company is a member of the Ethics in Business group. It focusses on recruiting independent sales teams and appears to operate on a multi-level marketing model. Although products are listed, there is little information given except to say that the cookware helps to prepare "healthy" meals. But, on the face of it, they appear to be simple stainless-steel pans in a variety of sizes with the only relatively novel item being a combined grater / steamer tray.

The company operates in several countries including Thailand and Australia.