2nd company penalized for posing as state office to Colorado businesses
The Colorado Attorney General's Office recently reached a settlement with a company it accused of mailing misleading marketing materials to thousands of Colorado businesses. The ads appeared to be official invoices from the Colorado Secretary of State's Office.
Compliance Services Colorado, based in Colorado Springs, agreed to refund $95,631 evenly among 3,640 Colorado individuals and businesses, the AG's office announced last week.
"Business owners in Colorado should know that filing periodic reports with the secretary of state's office costs $25," Colorado Attorney General Phil Weiser stated in a press release, "and while businesses are free to pay someone to file reports for them, mailers made to look like invoices or legal documents are just ads. In this case, the settlement ensures that people who received these illegal mailers get some of their money back while also preventing this company from collecting fees to file documents with the secretary of state's office in the future."
Colorado law, per the AG's office, allows a business to advertise its services for filing periodic reports to the secretary of state on behalf of customers (other Colorado businesses). The law requires those marketing materials to have clearly stated disclaimers in at least 24-point font at the top of the ad: "This is an advertisement. This offer is not being made by, or on behalf of, any government agency. You are not required to make any payment or take any other action in response to this offer."
Colorado law also prohibits the use of deadlines that appear to impose a legal duty on the business or consumer being solicited, per the AG's office.
Compliance Services Colorado charged $75 to file reports on behalf of businesses.
Last year, a similar agreement was reached between the AG's office and a Michigan-based company, Workplace Compliance Services for similar infractions of state law. That company also failed to display the same required legal disclaimers on its ads for filing periodic reports to the Colorado Secretary of State.
Workplace charged customers $150 for its services. It agreed to repay almost $19,000 to 135 Colorado businesses. It also agreed to pay a direct monetary penalty to reimburse the state for the cost of the investigation, and to submit future advertisements for review.
There is no other connection between the two companies despite their similar names, the AG's office confirmed.
Consumers who receive possibly deceptive marketing or other business practices are encouraged to file a complaint with the attorney general's office at StopFraudColorado.gov.
