Update on lawsuit regarding Freedom Tower coins

csw

Here's an update regarding the NY Attorney General's lawsuit against National Collector's Mint, which manufactured the "2004 Freedom Tower Silver Dollar." In its advertisements on TV and the web, the company misrepresented the coin as being an official "legally authorized government coin" comprised of solid or pure silver, thereby violating New York State's consumer protection laws. (Note that there was no allegation that the company did not use metal pulled from the collapsed towers.)

In October 2004, the supreme court in Albany County ruled that the company had indeed violated the State's consumer protection laws. Earlier this month, it ordered a restitution mechanism whereby the company is to send out a corrective letter offering refunds to all 180,000 consumers nationwide who purchased or ordered the product. The company was ordered to deposit $1.3 million in escrow and give the State additional security in order to secure refunds. The consumer letters went out on February 11, 2005, and we are now awaiting a final accounting as to the amount of refunds. The court also ordered that the company's future advertising concerning this product must include various disclosures and disclaimers.

FYI.

All this, of course, has nothing to do with the question of whether, or why, someone would nonetheless wish to purchase one, or why the coins seem to be commanding a very high price, which was the original question posed.

--csw
Assistant Attorney General
State of New York

INXS

So if they change the advertising and call its a clad silver coin or silver plated they can continue to sell these coins?

airplanenut

Who says our legal system doesn't work?

Say... you're the assistant AG? Cool!

csw

INXS: The company can continue to sell the coins as long as it does so in a way that doesn't violate the consumer protection laws; in this case, that means being truthful about the silver content (and all other factual representations, for that matter) and not misleading the public into thinking that the Freedom Coins are authorized or issued by the federal government.

Jeremy: An AAG, not the AAG. There are several hundred of us. I had nothing to do with this lawsuit.

-c-

CardsFan

csw,
thanks for the update. Here is the original thread you referred to tower coin. Your post reminded me to go look and see what they are doing on e-bay and the prices appear to have increased.
I wonder what the reissue of these coins will do to the value of the originals? I think an original would be interesting and historical piece to have especially if you save the articles from major coin publications with it, but I don't want to pay that much.

INXS

Probably if you wait a couple of months you will be able to buy them at the $19.95 issue price directly fom NCM.

UncleWiggly

I can't see NCM selling them again through their normal mass mailers and TV ads. But if the money is up and they have the coins under their control, they have to unload them somehow. I guess there is always the possibility they will dump them in a hole and write them off.


Jerry

TerrapinWill

Personally I think this is as sick as it gets, and why anyone would want to possess such a coin is also beyond my ability to understand. CSW...that Elliot Spitzer is something else, isnt he?

cosmicdebris

Does this also apply to resellers? ( I.E. some scumbag using the same marketing ploy on eBay )