Gillece to pay $700,000 in restitution to settle allegations of costly unnecessary work

Gillece will pay $700,000 in restitution after reaching a settlement with Pennsylvania over allegations that the company engaged in scare tactics and misled customers into paying for costly unnecessary sewer pipe replacements.

Pennsylvania Attorney General Dave Sunday announced the settlement on Thursday with Gillece Services, Gillece Plumbing and Heating, Thomas Gillece Sr., Thomas Gillece Jr. and two former technicians.

"Gillece pressured consumers to undergo expensive home repair work that was oftentimes unnecessary," Attorney General Dave Sunday said in a statement. "Gillece advertised specials that they knew they would not honor, leaving consumers on the hook for work they did not want or need."  

The state sued Gillece, alleging that the company "lured" customers with a "$93 or Free Clog Crusher Special," but when technicians were called, they told customers that the clogs could only be cleared with expensive and unnecessary excavation work. Many customers were told that their sewer pipes needed to be replaced for physical defects that didn't exist, the attorney general said. 

The lawsuit said that Gillece used scare tactics to get people to sign home improvement contracts, telling customers that they had gas leaks or cracked heat exchangers — diagnoses that were later discredited.  

Gillece was also accused of work that was "shoddy and inconsistent with its written warranties," the attorney general's office said, and sometimes, the company failed to give customers copies of their contracts and notices of cancelation at the time of sale, which is legally required. 

The settlement consists of $700,000 in consumer restitution, $50,000 in costs and $250,000 in suspended civil penalties, the attorney general's office said. Consumers who are eligible for restitution will be contacted by the Pennsylvania Office of Attorney General and don't need to do anything. 

Under the settlement, the state said Gillece has agreed to make several changes, including certifying plumbing and HVAC technicians, trying multiple times to unclog a sewer line and letting consumers know that they can get a second opinion on whether more work is needed.

The settlement also bans former Gillece technicians James Hackwelder and Joseph Nikoula from the plumbing industry for five years.