DES MOINES, Iowa (Legal Newsline) - Iowa Attorney General Tom Miller announced two orders on Friday against two Phoenix companies that allegedly used deceptive sales pitches to sell products.
The for-profit company Action Point LLC and Robert Foster, the company's owner, allegedly tried to increase the sales of high-priced products by falsely claiming that its telemarketers were disabled veterans. District Court Judge Mary Pat Gunderson permanently restrained the defendants from direct mail or telemarketing to Iowa consumers. The consent judgment resolves a lawsuit Miller's office filed in July.
In a separate case, America Workshops LLC and George Thomas, the company's owner, allegedly sold trash bags, light bulbs and other household items by phone using a charity-themed sales pitch to sell items at a premium price.
"Callers say they are not a charity asking for donations, but that purchases help workers by providing them jobs, so they can be 'tax payers' not 'tax burdens,'" Miller said. "And we know their callers sometimes go much further by making unauthorized and dubious claims that purchases provide vital shelter credits to veterans."
America Workshops and Thomas agreed to stop calling Iowa customers in May after Miller's office sought a court order to force the company to respond to an inquiry from Miller's Consumer Protection Division. The company allegedly continued to call consumers through August.
"At that point we knew the company's previous commitment not to call Iowans was worthless," Miller said.
A Polk County judge issued a consent judgment against America Workshops to ban the company from telemarketing in Iowa on Oct. 26.
Action Point LLC, Robert Foster, America Workshops and George Thomas did not admit liability under the terms of the separate agreements.