Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC moves to halt phony OSHA scam targeting new small businesses, (Jun 21, 2016)

By Edward L. Puzzo, J.D.

A Florida man and his company bilked at least $1.3 million from newly-opened small businesses by posing as agents of the Occupational Safety and Health Administration (OSHA) or similar government agencies, and requiring the business owners to purchase regulation posters for their premises, the FTC has charged (FTC v. D&S Marketing Solutions, LLC, Civil Action No. 8:16-cv-01435-MSS-AAS).

The FTC complaint, filed in the federal district court in Tampa, alleges that Sean K. Juhl and D&S Marketing Solutions contacted business owners, pretending to be from OSHA or using names that sounded like government agencies, warning the business owners they were not in compliance with federal law and were subject to immediate fines or the shutting down of their businesses if they did not immediately purchase regulatory posters from them at a cost of $179.99 to $189.99.

After paying for the posters, victims discovered that they were dealing with a company, not a legitimate government agency that could have provided them with regulatory posters at no charge. Those who called the company for refunds typically could only leave voicemails that were not returned; the defendants allegedly made it difficult to obtain refunds.

The FTC seeks to permanently stop the alleged illegal practices and obtain refunds for the victimized businesses. In the interim, on June 8, 2016, the federal court entered a temporary restraining order (TRO) against the defendants.

Companies: D&S Marketing Solutions, LLC

News: ConsumerProtection FederalTradeCommissionNews