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Ohio Files First Do Not Call Lawsuit
COLUMBUS, Ohio -- Consumer Grants USA recently became the defendant in Ohio's first lawsuit for violations of the state's Do Not Call law, reports state Attorney General Jim Petro. The Consumer Protection Section of his office, he said, has received numerous complaints about the Florida-based company.The lawsuit alleges that the company defrauded consumers by soliciting sales over the telephone after the consumers were signed up on the Do Not Call registry for the allotted 90 days and had no previous business relationship with the company. The lawsuit further contents that this conduct violates Ohio's Do Not Call law, the Consumer Sales Practices Act and the Telephone Solicitation Sales Act."Ohio consumers should take advantage of the protection the Ohio Do Not Call law offers them by registering online," said Petro. "This company not only violated the Do Not Call law, but consumer complaints point to violations of several other Ohio Consumer laws, which I intend to enforce."Consumer Grants USA hires telemarketing firms to conduct telephone solicitations on its behalf to Ohio residents. However, neither Consumer Grants USA nor the contract telemarketing firms are registered in Ohio as telephone solicitors, in violation of the Telephone Solicitation Sales Act, Petro said. Ohio consumers reported that the telephone solicitors inform them that they were selected to receive a "guaranteed federal government" grant worth anywhere from $8,000 to $25,000, Petro said. All consumers must do to receive the grant is pay a one-time processing fee of $239 to $249. Consumers are then instructed to give their personal banking account information so Consumer Grants USA can withdraw the fee and get the consumers the money they deserve. The consumers, however, do not receive grant money and instead receive, in some cases, a book about how to apply for grants, Petro said. Consumers complained that they tried to call customer service about the mix up and were not able to get a hold of anyone. Petro says the company did not properly disclose a refund or cancellation policy, in violation of Ohio Consumer laws.Petro asks that consumers be refunded their money and that the company follow Ohio consumer laws if it continues to do business in Ohio.Ohio's Do Not Call law enhances protections offered by federal Do Not Call regulations. The Ohio law: Allows the Attorney General to investigate alleged violations of Do Not Call laws and regulations. Authorizes the Attorney General to file lawsuits for Do Not Call violations in state court on behalf of Ohio residents. Allows the Attorney General to recover damages for consumers and civil penalties. Creates the Telephone Solicitation Protection Fund in the state treasury, where civil penalties would be deposited to reimburse the state for the costs associated with investigating and enforcing Ohio's Do Not Call law. Consumers who want to file a complaint should go to www.ag.state.oh.us or call 1-800-282-0515."