An e-commerce promotional products company and its top executive are in hot water with the Federal Trade Commission amid allegations that the Richmond, TX-headquartered firm failed to deliver on promises that it would quickly ship products like face masks, sanitizer and other personal protective equipment (PPE) related to the coronavirus pandemic.

The FTC announced Wednesday, Aug. 5 that it was suing Azim Makanojiya and his company Zaappaaz Inc., which also does business as wrist-band.com, WBpromotion.com, CustomLanyard.net and WB Promotions. An earlier version of this story indicated that WB Promotions was no longer ASI-listed, but subsequent research showed the company’s account remains active. WB Promotions has an ESP rating of 4.5 stars out of 5.

The lawsuit alleges that Makanojiya and Zaappaaz violated the FTC’s Mail, Internet and Telephone Order Rule (Mail Order Rule), which requires that companies notify consumers of shipping delays in a timely manner and give consumers the chance to cancel orders and receive prompt refunds.

“When online merchants lie about the availability of personal protective equipment or about the ability of products to prevent and treat COVID-19, it’s a significant safety concern, and it’s illegal,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “The FTC will take aggressive action to stop such troubling conduct.”

Among other remedies, the suit asks the court to enter a permanent injunction that would prevent Zaappaaz from further violations of the FTC Act and to compel Makanojiya/his companies to pay restitution/refunds and damages incurred by alleged consumer victims. The FTC filed the suit in the U.S. District Court for the Southern District of Texas.

According to the FTC, wrist-band.com and other Zaappaaz-controlled online storefronts promised that face masks, face shields, thermometers and gloves were “in stock” and “GUARANTEED TO SHIP TODAY” as early as March. However, authorities allege, the defendants regularly waited weeks to ship products and failed to inform consumers of the delays, in violation of the Mail Order Rule.

The FTC suit cites examples of customers whose orders were not delivered by the promised date and who were told by the company that no refunds were available.

For example, two Zaappaaz consumers, on April 1, 2020, spent $4,776.73 on face masks, goggles, and face shields for their daughter, a nurse who has an underlying medical condition and works in a hospital, according to the complaint. The consumers paid over $400 for two-day shipping. Yet, they did not receive their order on the guaranteed delivery date. After the date passed, the consumers asked to cancel the order, but were told that PPE orders are nonrefundable and nonreturnable, the FTC asserts in its lawsuit.

Another consumer, authorities maintain, ordered infrared thermometers on April 7, 2020, with guaranteed delivery two days later. When Zaappaaz failed to deliver the order on the guaranteed date, the consumer asked that his order be canceled, but his request was allegedly denied. Despite the failure to deliver his order, Zaappaaz sent this consumer an email advertising the same product he had ordered as in stock and ready to ship.

Beyond such alleged instances, the complaint also cites examples of consumers who were eventually promised refunds that the company never provided.

A certain consumer purchased 10 face shields on April 5, 2020, for $232.81. The order total included a $52.91 shipping fee with a delivery date of April 7, 2020. When the order did not arrive as promised, the consumer asked to cancel her order, but was told it was nonrefundable, the FTC details. After multiple communications with wrist-band.com, the defendants offered to refund the rush shipping charge once the consumer received her package. As of July 24, 2020, the consumer was still waiting for her promised refund, according to the lawsuit.

Furthermore, the FTC’s suit details instances in which consumers were delivered incorrect or defective products and were told that they were not eligible for a refund.

One such consumer paid $579.20 for five automatic hand sanitizer dispensers for business use during the COVID-19 pandemic. The wrist-band.com website advertised that the dispensers worked with any type of hand sanitizer (liquid, gel, or foam). The delivered products, however, did not dispense liquid or gel hand sanitizer. The consumer asked for a refund, but was told all sales were final and the consumer would need to purchase new nozzles, for $25 each, for the dispensers to work, the FTC says.

Makanojiya is president and director of Zaappaaz – a company he founded in 2008. This isn’t the first time he and Zappaaz have been in trouble with federal authorities for alleged dodgy business practices. In 2017, he pled guilty, individually and on behalf of Zaappaaz, to charges of price fixing. The U.S. Department of Justice’s antitrust criminal division had filed those charges.

The current FTC lawsuit against Zaappaaz and Makanojiya is part of that government agency’s ongoing crackdown on companies it says are opportunistically preying on consumer fears and needs related to the COVID-19 pandemic.

In announcing the suit against Zaappaaz, the FTC also revealed it was filing complaints against other online merchandisers for alleged violations of the Mail Order Rule in relation to PPE. Other companies charged include QYK Brands and its related Glowyy and Dr. J’s Natural, LLC, as well as American Screening, LLC.