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NEWARK
– Comm-Services LLC, a Monmouth County-based
DVD mail-order company, and its owner and
manager, have agreed to abide by the decisions
of the State Division of Consumer Affairs’
binding arbitration process with 78 New
Jersey consumers who complained of unauthorized
credit card charges, as part of a Consent
Order signed with the Division.
The
company along with its owner, Abraham S.
Cohen, formerly of Long Branch, and manager,
Elliott Mavorah of Long Branch, also agreed
to pay the Division $186,000, including
$175,000 in civil penalties and $11,000
in investigative costs and attorneys’
fees. The subjects paid an initial $11,000
installment to the Division on May 3, the
day the Consent Order was executed, and
will pay $50,000 on or before May 31.
The
State will suspend the $125,000 balance
of the civil penalties provided that, over
the next five years, Comm-Services and its
owner and manager comply with the terms
and conditions of the Consent Order.
“The
Division of Consumer Affairs fought and
won a clear victory for New Jersey’s
consumers,” Attorney General Paula
T. Dow said. “With this Order, the
State holds a $125,000 penalty over the
heads of Comm-Service and its owner and
manager, should they fail to honor binding
arbitration with consumers, or otherwise
fail to comply with the settlement terms.”
Also
under the Consent Order, the Division of
Consumer Affairs will refer any new consumer
complaints to Comm-Services for resolution.
If the company disputes a new complaint
or requested relief, the matter will be
referred to the Division’s Alternative
Dispute Resolution Unit for binding arbitration.
“New Jersey will not let businesses
get away with abusing consumers through
unauthorized credit card charges, deceptive
ads, or confusing and unspecified terms
and conditions,” Thomas R. Calcagni,
Acting Director of the New Jersey Division
of Consumer Affairs, said. “This Order
will provide just relief to the consumers
who were affected, and will ensure that
Comm-Services and its owners and operators
take seriously their legal obligations under
the Consumer Fraud Act.”
The
Division alleged that Comm-Services, through
the conduct of Cohen and Mavorah, violated
the New Jersey Consumer Fraud Act (CFA)
and Advertising Regulations by placing unauthorized
charges on consumers’ credit cards
after mailing DVDs the consumers did not
order – with such anti-classic movies
as “Rescue from Gilligan’s Island,”
“King of the Cowboys,” “At
War With the Army,” and “I Wonder
Who’s Killing Her Now?” Comm-Services,
Cohen, and Mavorah denied committing any
violations of the CFA or Advertising Regulations.
The
subjects agreed in the Consent Order that
they will not charge consumers for merchandise
they did not order; will not charge consumers’
credit cards without the consumers’
express authorization; will disclose in
advertisements the complete cost of merchandise
including shipping and handling; and will
clearly and conspicuously set forth all
disclaimers that apply to the sale of merchandise.
The
Monmouth County Office of Consumer Affairs
played a critical role in this resolution,
by forwarding complaints to the State, and
assisting with the investigation.
Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its Web site, www.NJConsumerAffairs.gov,
or by calling 1-800-242-5846
(toll free within New Jersey) or
973-504-6200.
Deputy
Attorney General Gina M. Betts of the Consumer
Fraud Prosecution Section represented the
Division of Consumer Affairs in this matter.
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