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ATTORNEY GENERAL HERRING ISSUES RESTITUTION CHECKS TO CONSUMERS HARMED BY DOOR-TO-DOOR SALES OPERATION
~ KLMN Readers Services, Inc. was found to have engaged in illegal business practices during the door-to-door sale of magazines ~
RICHMOND(February 15, 2016) - Attorney General Mark R. Herring announced today that his office has mailed restitution checks totaling more than $20,000.00 to 265 consumers as part of a judgment in a lawsuit filed against KLMN Readers Services, Inc., a Florida door-to-door magazine sales company that based its Virginia operation out of Chesapeake. The lawsuit alleged that the company sold magazine subscriptions with no intention of providing the magazines, failed to honor certain terms of its agreements, lied about subscriptions that would be donated to charities and soldiers overseas, and failed to issue refunds as required by law. The suit was filed in Chesapeake City Circuit Court and the Commonwealth won judgments against the company in September 2014 and March 2015.
"I will not tolerate companies that lie to potential customers or fail to make good on their promises," said Attorney General Herring. "It was a long fight, but I'm glad we're getting restitution to the consumers that were a victim of KLMN's illegal actions. If you're considering purchasing any good or service, do as much research as you can to make sure the company is reputable and honest. If you're ever a victim of an illegal or deceptive business practice, reach out to my office immediately and we'll do whatever we can to defend your rights as a consumer."
A Permanent Injunction and Final Judgment entered by the court found KLMN to have violated the Virginia Consumer Protection Act and the Virginia Home Solicitation Sales Act in the following manner:
1. by offering and selling magazine subscriptions when it had no intention to subscribe consumers or deliver the magazines, in violation of Virginia Code §§ 59.1-200(A)(5), (8), and (14);
2. by entering into written agreements with customers to resolve disputes that arose in connection with consumer transactions, and thereafter failing to adhere to the terms and conditions of the agreements made, in violation of § 59.1-200(A)(14) and (17);
3. by misrepresenting to at least some consumers that magazines would be sent to charitable organizations or to soldiers overseas, when it had no intention of delivering the magazines as promised, in violation of §§ 59.1-200(A)(5), (8), and (14);
4. by failing to issue refunds to consumers who attempted to cancel their subscription orders within three days of completing the orders, in violation of § 59.1-21.5(1); and
5. by failing to issue refunds within ten days for the full purchase price to those consumers who did eventually receive refunds, in violation of § 59.1-21.5(1).
The Commonwealth continues to have unsatisfied judgments against the company for attorneys' fees and civil penalties and will continue efforts to collect the remainder of those judgment amounts, as well as to enforce the permanent injunction obtained against the company prohibiting it from violating relevant provisions of the Virginia Consumer Protection Act and the Virginia Home Solicitation Sales Act.
The Attorney General first learned of consumer concerns relating to KLMN through complaints filed with the Better Business Bureau of Greater Hampton Roads and complaints filed directly with the Office of the Attorney General of Virginia.
The Commonwealth is represented in this matter by Assistant Attorney General Stephen John Sovinsky and Senior Assistant Attorney General David B. Irvin.
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