State AG settles case of deceptive invoices to businesses

DENVER — The state attorney general’s office has reached a settlement with a Michigan company that had been soliciting businesses to file their periodic business reports through the secretary of state. The solicitations were presented to business owners as invoices, and did not contain required legal disclaimers, according to a news release.

 Under the terms of the settlement, the company will have to issue refunds to affected consumers and will include correct disclaimers on future ads, the release stated.

The company charged businesses $150 to file periodic reports required by the secretary of state, when it only cost $10 to file on their own. The company, called Workplace Compliance Services, reported it had already refunded $7,000 to 50 businesses, the release stated. The settlement with the AG’s office requires the company to refund an additional $11,900 to 85 more businesses, the release stated. 

While it is legal to send solicitations offering to file documents with the secretary of state’s office on a client’s behalf, these ads must contain a disclaimer in at least 24-point font explaining to recipients that it is not coming from or on behalf of a government agency, and that businesses are not required to pay or otherwise act on the offer, the release stated.

“Colorado business owners shouldn’t have to look at a piece of mail with a magnifying glass to determine if a document they receive is a legitimate bill or other official communication, or an ad,” said Attorney General Phil Weiser in the release. 

In addition to the required refunds, Workplace Compliance Services will provide a report of all refunds issued, will submit future ads to the Department of Law for review, and will pay an additional $7,000 for reasonable costs related to the state’s investigation, the release stated.  

Coloradans who receive deceptive ads in the mail, or see them anywhere else, are encouraged to file a complaint with the attorney general at StopFraudColorado.gov.

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