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Seven online merchants operating more than 40 Web sites have agreed to pay a $765,000 settlement following an investigation by the New York State Attorney General’s office, the AG’s office said.

“These companies engaged in the worst kinds of consumer fraud, from classic bait-and-switch schemes to blatant lies and bullying sales tactics,” New York Attorney General Andrew Cuomo said in a news release that went out Thursday. “Let this be a message to online merchants everywhere: such abuse of consumers and violation of the law will not be tolerated.”

All of the companies were based in Brooklyn, and while their names invoke digital photography, many also sell gear ranging from projectors to HDTVs and computers.

Five of the companies–Best Price Camera, Foto Connection, 1 Way Photo, 86th Street Photo, and Broadway Photo–agreed to change their business practices, according to the release, while the other two–Camera Wiz and Sonic Photo–will close. A full list (PDF) of the companies and Web sites involved in the settlement is available at HDGuru.com.

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