Attorney General's News Release

January 4, 2005

Attorney General Nixon sues Raytown woman for duping dozens of bidders on her Internet auctions

Kansas City, Mo. — Attorney General Jay Nixon obtained a temporary restraining order in Jackson County Circuit Court Monday against a Raytown, Mo., woman who offered dozens of items on Internet auction sites and didn't deliver the merchandise.

Nixon asked the court to bar Hope Madewell from Internet sales and auctions. He also filed a civil lawsuit against Madewell asking for full restitution for all customers who never received a refund or merchandise; a civil penalty of $1,000 for each violation; a monetary penalty equal to 10 percent of restitution, payable to the state Merchandising Practices Revolving Fund; and full restitution to the state for the cost of investigating and prosecuting the case.

"Consumers have found a wealth of convenience and merchandise via the Internet, but unfortunately, so have unscrupulous merchants," Nixon said. "If we are to take advantage of online technology and all its benefits, we must be ever vigilant in policing the actions of those who would otherwise defraud consumers."

The suit alleges that since August 2003, Madewell — using her own name and a half dozen aliases — offered jewelry, watches, iPods and other items for sale on eBay and other Internet auction sites. When offering the items for sale she would advertise that payments could be made through PayPal, a payment service company. But when a consumer won the auction, she would insist that payment be made via check or money order.

At least 24 consumers nationwide are known to have paid for items offered by Madewell, but never received the merchandise or a refund. Ebay subsequently suspended her privilege to offer merchandise due to numerous complaints. A hearing on Nixon's request for an injunction against Madewell is scheduled for Jan. 12.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818