June 3, 2024 (DENVER) – Attorney General Phil Weiser announced a settlement with ANS Inc., a Michigan-based company operating in Colorado as Workplace Compliance Services. The company had been found to illegally solicit Colorado businesses using advertisements that lacked required legal disclaimers. Under the settlement terms, the company will issue refunds to affected consumers and ensure future ads include the correct disclaimers.
Workplace Compliance Services charges businesses $150 to file periodic reports required by the Secretary of State. The company assured Department of Law attorneys that it has already refunded $7,000 to 50 businesses. Under the settlement, it will refund an additional $11,900 to 85 more businesses.
While sending solicitations offering to file documents with the Secretary of State’s office on behalf of clients is legal, these ads must contain a disclaimer in at least 24-point font explaining that they are not from or on behalf of a government agency and that businesses are not required to pay or act on the offer.
“Colorado business owners shouldn’t have to look at a piece of mail with a magnifying glass to determine if a document they receive is a legitimate bill or other official communication, or an ad,” Weiser said. “With this action, we are returning thousands of dollars back to business owners and ensuring that future ads have the proper disclaimers to reduce confusion.”
In addition to issuing refunds, Workplace Compliance Services will provide a report of all refunds issued, submit future ads for review by the Department of Law, and pay an additional $7,000 for reasonable costs related to the state’s investigation. The company cooperated with state attorneys during the investigation and made several changes to its business practices while the investigation was pending; these changes are now binding requirements under this settlement.
“I was proud to lead the new law that makes it illegal for third-party fraudsters to trick Colorado business owners into paying artificially high business renewal fees,” said Secretary of State Jena Griswold. “I will always work to make owning a business easier and look forward to continued partnership with the Attorney General’s Office on holding bad actors accountable.”
Coloradans who receive deceptive ads in the mail or see them elsewhere are encouraged to file complaints with the attorney general at StopFraudColorado.gov.