AG Gansler Secures Settlement with Montgomery Co. Cleaning Companies
Consumers were not informed of their contract cancellation rights
Baltimore, MD (July 25, 2014) - Attorney General Douglas F. Gansler announced today that his Consumer Protection Division has secured a settlement with air duct cleaning companies Mountain Air Services, Inc., and Gold Air Services, Inc., and their owners, Shay Leon, Shiri Leon and Shiran Atias. The settlement resolves allegations that the companies and their owners failed to inform consumers of their rights to cancel their contracts.
"The cancellation provision is in place to protect consumers from high-pressure sales tactics and impulse purchases that they might later regret," said Attorney General Gansler. "Businesses that fail to notify consumers of these rights should be aware that such neglect will not be tolerated."
The Division previously charged the companies, based in Montgomery County, and its owners with violating the Maryland Consumer Protection Act and the Maryland Door-to-Door Sales Act in connection with their offer and sale of air duct cleaning, carpet cleaning and mold treatment services by using contracts that did not comply with the Door-to-Door Sales Act. Among other things, the contracts did not provide consumers with notice of their right to cancel their purchases within three business days.
In addition to violating the Door-to-Door Sales Act, misrepresenting the consumers' right to cancel is an unfair or deceptive trade practice under the Maryland Consumer Protection Act.
The settlement requires the companies and their owners to fully comply with the Door-to-Door Sales Act, as well as the Consumer Protection Act. They must also provide the Consumer Protection Division with copies of all contracts and attached notices that they intend to use for door-to-door sales in Maryland, and for a period of five years, notify the Division of any changes to those contracts or notices.
The settlement also requires the companies and individuals to pay $88,500 in penalties and costs to the Division (which may be reduced to $38,500 if they comply with all settlement terms).