NEWARK
– Community Surgical Supply, Inc.,
a company that provides wheelchairs, oxygen
machines and other healthcare equipment
to consumers, will revise its business practices
and be subject to state monitoring, under
terms of an Assurance of Voluntary Compliance
(AVC) that resolves an investigation of
the company by the State Division of Consumer
Affairs.
Community
Surgical Supply will pay $50,000 in civil
penalties, plus $8,490 in reimbursement
of the attorneys’ fees and investigative
costs incurred by the Division, under terms
of the AVC. The investigation examined the
company’s business practices to determine
compliance with the state’s Consumer
Fraud Act and the Refund Policy Disclosure
Act and related regulations.
As
part of the settlement, the company is required
to employ a Consumer Liaison and perform
quarterly audits for at least two years
to ensure compliance with the state’s
consumer protection laws and terms of the
AVC.
For
a period of one (1) year, any consumer complaints
received by the Division will be referred
to Community Surgical Supply for resolution.
Any unresolved complaints will be referred
to the Division’s Alternative Dispute
Resolution (“ADR”) Unit for
binding arbitration, under terms of the
AVC. Also, Community Surgical Supply must
maintain files on all actions it files in
Small Claims Court for the next seven (7)
years.
“The
company is required to disclose its return
and refund policies, both at its retail
location and on its website, under the law.
We expect full compliance, and we will be
closely monitoring the company’s business
practices,” Attorney General Paula
T. Dow said.
Dow
thanked the Ocean County Office of Consumer
Affairs for beginning the investigation
of Community Surgical Supply and then working
with Division investigators to resolve the
case.
Twenty-four
(24) complaints filed by consumers since
2008 against Community Surgical Supply were
settled prior to the AVC being signed. One
existing consumer complaint will be sent
to binding arbitration for resolution.
“With
the sweeping business reforms mandated by
this settlement, it is my hope we won’t
hear any more consumer allegations about
the company refusing to accept return of
equipment as rental fees continue to pile
up,” said Thomas R. Calcagni, Acting
Director of the Division of Consumer Affairs.
“If we do, our investigators will
be back at the company’s offices.”
The AVC also provides a 30-day grace period
for the return of unused merchandise by
a consumer, except for garments and rented
equipment.
Deputy
Attorney General Jeffrey Koziar of the Consumer
Fraud Prosecution Section represented the
Division in this matter. This matter was
investigated by the Division’s Office
of Consumer Protection.
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