Pike County Businessman and Company Accused of Violating State's 'Do Not Call' Law; Suit Seeks Permanent Ban on Doing Business in PA
Attorney General Jerry Pappert
today announced that his Bureau of Consumer Protection has filed a civil
lawsuit against a Pike County businessman and his home security company
accused of illegally contacting consumers at their homes and falsely claiming
an affiliation with corporate giant General Electric and consumers' local
police departments. The lawsuit follows an investigation into complaints from
more than a dozen consumers located in Philadelphia, plus Bucks, Chester,
Monroe and Pike counties.
Pappert identified the defendants as Kenneth A. Broda, RR 1, Box 1087,
Dingmans Ferry, Pike County, individually, and doing business as Guardian
Alert and Advanced Concepts of NY, Inc. Broda operated the business from his
home address. The lawsuit accuses the defendants of violating Pennsylvania's
Telemarketer Registration Act and Unfair Trade Practices and Consumer
Protection Law.
According to investigators, the defendants through 2003 conducted a
telemarketing campaign in northeastern and southeastern Pennsylvania to
promote or sell private home alarm systems. The telemarketing calls originated
from two call centers located in India.
Agents said telemarketers told consumers that they were chosen to receive
a free home alarm system that would be installed in their homes at no charge.
The callers also stated that the offer included two free airline tickets.
Pappert said more than a dozen Pennsylvania consumers complained to his
office that they received these calls despite officially registering their
names, addresses and telephone numbers on the state's "no call" registry.
Under Pennsylvania law, as of November 1, 2002, all telemarketers are
prohibited from calling any consumer who is enrolled on the official list.
Many consumers said when they asked the callers to identify themselves,
the name of the company on whose behalf they were calling or provide other
contact information, the callers typically hung up. In other cases, the
callers claimed that the Pennsylvania "Do Not Call" law did not apply to them.
According to the lawsuit, the defendants failed to purchase Pennsylvania's "no
call" list prior to conducting their telemarketing campaign. The suit also
claims that the defendants failed to:
-- Register the business name Guardian Alert with the Pennsylvania
Department of State.
-- Register Advanced Concepts of NY, Inc., with the Pennsylvania
Corporation Bureau as a foreign corporation authorized to conduct
business in the Commonwealth.
-- Register as a telemarketer with the Attorney General at least 30 days
prior to engaging in telemarketing activities and post the proper
bond.
-- Ensure that the callers promptly disclosed their names, the nature of
the calls, the name of the telemarketing business and other
identifying contact information including a return telephone number
and address.
-- Reveal their telephone number by blocking it from consumers' caller ID
systems in violation of state law.
Pappert said the lawsuit also accuses the defendants of falsely claiming
an affiliation with a major company and the consumers' local police
departments to encourage participation in the sales campaign. The company made
money by requiring consumers to sign a three-year contract that included
monthly charges and maintenance fees.
Consumers said the defendants claimed to be working as a division of
General Electric, when in reality the defendants had no affiliation with the
corporate giant. In other instances, consumers were allegedly told that
Guardian Alert was affiliated or had the approval of their local police
department.
The complaint asks the court to require the defendants to:
-- Immediately cease violations of Pennsylvania's Telemarketer
Registration Act and Consumer Protection Law.
-- Forfeit their rights to conduct business in the Commonwealth.
-- Pay civil penalties of $1,000 per violation and $3,000 for each
violation involving a consumer age 60 or older.
-- Pay the Commonwealth's investigation costs.
Consumers who wish to file a complaint in the case are asked to contact
the Attorney General's Bureau of Consumer Protection at 1-800-441-2555 or
visit http://www.attorneygeneral.gov.
The lawsuit was filed in Monroe County Court. The case is being handled
by Senior Deputy Attorney General E. Barry Creany of Pappert's Bureau of
Consumer Protection in Ebensburg.
CONTACT: Barbara Petito, Deputy Press Secretary, Pennsylvania Office of
Attorney General, +1-717-787-5211.