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State's Consumer Protection Extended To Business
02-08-2010

For the first time in Ohio, the Attorney General’s Consumer Protection section has opened its doors to handle complaints from small businesses being preyed upon by scammers and deceptive vendors.

“Businesses with fewer than 20 employees create half of the jobs in the state. We know they are often targeted by scammers, but before today they did not have recourse through our office against this epidemic of predatory practices,” said Cordray. “For Ohio’s economy to prosper and sustain our families and communities, we have to support and grow small businesses. This is another way for us to help level the playing field for small business.”

Cordray said his office began testing the initiative last July with the state’s trade organizations and chambers of commerce. To date, more than 500 complaints have been filed by small businesses and nonprofits targeting deceptive advertising, billing disputes, unauthorized charges and shoddy workmanship or services. The Attorney General’s Office has recovered or saved more than $60,000 on their behalf.

“Like the rest of us, small businesses in our state are carefully watching their bottom line,” said Cordray. “My consumer protection section is able to help small business owners understand how to solve these kinds of problems and get back the money owed to them, regardless of how nominal the dollar figure. I understand that it matters to the survival of these small businesses and it is a priority for the Attorney General’s office.”

Cordray gave examples of how the initiative is working:

• A Trotwood trucking company employee purchased a truck over the Internet for more than $8,000. After paying for the product, the supplier failed to deliver and refused to return phone calls. The Attorney General’s Office resolved the issue and the trucking company received its purchase.
• A West Jefferson library was charged for a web service that it never authorized. The Attorney General’s Office recovered $244.
• A Columbus auto repair company was charged $849 for a Web site advertisement listing that they never authorized. The Attorney General’s Office resolved the issue and the auto repair company did not have to pay the charges.

“With today’s economic challenges, our businesses are feeling the strain,” said Roger Geiger, Ohio Executive Director and Vice President of the National Federation of Independent Business. “Support is always welcomed, especially when it comes in the form of saving resources and recovering lost dollars. As the pilot numbers show, Attorney General Cordray has responded to a need within the Ohio small business community.”

The Attorney General’s Consumer Protection section has authority to pursue legal action against companies that do not follow the Deceptive Trade Practices Act, Cordray said.

Kip Morse, President of the Better Business Bureau serving central Ohio, said Cordray’s initiative “provides the leverage necessary to take complaints to the next level through legal action when warranted. By working together, we will cover more ground and ensure a fairer marketplace.”

Cordray encourages small businesses that experience unfair practices such as scams, deceptive advertising, shoddy workmanship, billing disputes, unauthorized charges, worker misclassification, monopolies or boycotting by competitors, or any illegal conduct, to contact his office at www.OhioAttorneyGeneral.gov/Business or by calling (800) 282-0515.

For factsheet information about the Attorney General’s small business consumer complaint pilot program, please visit www.OhioAttorneyGeneral.gov/BusinessComplaintsFactsheet.

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