Three states have sued jewelry retailer Friedman's for allegedlymisleading customers into paying for life, property, and otherinsurance while they thought that they were insuring the financingof jewelry purchases. Attorneys general in Texas, Tennessee, andFlorida are charging Friedman's with selling $46.7 million ofinsurance in 19 states while failing to adequately disclose thecosts to customers.

“This wrongful conduct ranged from duping consumers intopurchasing products they did not ask for to charging them forsomething that may have had no value,” said Florida AttorneyGeneral Charlie Crist.

In response to the allegations, Friedman's stated that it doesnot condone any improper practices alleged in the complaints. Thechain's management also said that the transactions in questionprimarily occurred between 1998 and 2002, and that it hasimplemented measures designed to monitor and assure compliance withcompany policy concerning credit insurance sales practices,including the replacement of several executives.