Consumer Fraud Archive

Gambling for Justice: Class Action Lawsuit v. Small Claims Court, Place Your Bets

January 13th, 2012. By AbiK

It’s a well-chronicled sentiment: class action lawsuit lawyers get rich on attorneys’ fees and the little guy gets stiffed. Whether true or not—and there are arguments on both sides—it’s easy to see how a settlement check for $1.13 can make a plaintiff feel like ‘thanks, but no thanks’. And that brings us to the case of Heather Peters, who is suing Honda in small claims court over her claim that Honda engaged in false advertising when it stated her 2006 Honda Civic Hybrid had a 50 MPG rating.

Small claims court? Isn’t that only for some kind of ‘my boyfriend split with my smart phone and $800 I had under the mattress” type of reality tv show crap?

Well, no—and that’s the point—or calculated bet—Peters is trying to make. See, according to the Honda Civic Hybrid Class Action lawsuit proposed settlement FAQ, each class member would receive $100 as settlement. Peters, who is a former attorney herself, deems that a bit of a paltry sum and so she took the route that most of us do not and she chose to opt out of the proposed settlement. And, in turn, she took her complaint to small claims court.

What’s intriguing about her choice is that, not only can she seek up to $10,000—the new 2012 limit set for small claims in California where the complaint is being heard—but, if she can persuade enough 2003-2009 Honda Civic Hybrid owners to follow suit (no pun) and head to small claims court, she estimates that Honda would be liable for nearly $2 billion—vs the current liability they face coming out of the class action lawsuit in which each class member would receive $100.

Talk about power to the people—if only the people took to the power—by February 11, 2012—the date by which class members’ opt out requests to the Settlement Administrator need to be postmarked.

At issue in the Honda Civic Hybrid Class Action lawsuit is not just that advertised miles per gallon (MPG) ratings for the car were misrepresented, but also—and here’s where a subclass of class members enters into the picture, to which Peters also belongs—that for model years 2006-2008, Honda Civic Hybrid (HCH) owners were told their cars needed a software update to the Integrated Motor Assist (“IMA”) battery system.

What HCH owners didn’t know—and American Honda Motor Co. apparently did not disclose—was that allegedly, in order to install the update, the result would be a negative impact on fuel economy. Not ideal when the primary reason you purchased the car was for its fuel economy.

You can start to see where $100 per claimant—worth what? a couple of tank fills?—isn’t sounding like much.

So Peters is placing her bets on small claims court. But as stated earlier, it’s a bit of a calculated bet for her–she’s done, and doing her homework. Just see her website. And she says that anyone can do the same.

But would you?

Prepping for small claims court, sans an attorney of course as that’s part of the charm of small claims court—no lawyers allowed—takes time. And, you do have to have the ability to put together a pretty darn good case, particularly if you’re taking on a major corporation. Given that, it comes down to whether you think it’s worth it, or not. And that’s probably why so many of us sit back and await whatever settlement check we receive.

You have to admire Peters though. She’s up for a fight, and she’s got a pretty good one from the looks of it—perhaps even a new profession in behind-the-scenes small claims coaching. And, at least she is not just sitting back and complaining about attorneys’ fees—she’s trying to take a stand, both literally and figuratively.

Peters’ next hearing date is January 25.

Tags: American Honda Motor Co, Class Action Lawsuit, Consumer Fraud, false advertising, HCH, Heather Peters, Honda Civic Class Actin Lawsuit, Honda Civic Hybrid, MPG, Small Claims Court
Posted in Class Action, Consumer Fraud, Emerging Issues | 1 Comment »

Channeling Picasso for Oscillo Flu Relief Fraud?

January 11th, 2012. By AbiK

Picasso must be rolling in his grave at Château de Vauvenargues. That is, if he’s seen the latest round of homeopathic ‘remedy’, Oscillo, flu symptom relief ads. Yes, the same Oscillo that found itself on the receiving end of a class action lawsuit last August for fraudulent marketing—something about its being “nothing more than a sugar pill.”

Well, those Oscillo (or Oscillococcinum) marketers over at Boiron, which has its US headquarters not far out of Philly, must’ve taken a field trip when the Picasso exhibit was at the Philadelphia Museum of Art—and in a flash of creative genius someone said, “that Picasso right there…it’s the embodiment of the being…completely ensnared by flu…just feel the incoherence begging for clarity!” Ah yes, the germ of an ad campaign, right then and there. Just add water.

That’s the ad at left. You can see it has an illustration of a woman, clearly a bit discombobulated a’la Picasso, that’s meant to show how she’s suffering from flu symptoms. Woe is she, indeed.

But then, she takes homeopathic Oscillo and before you know it, everything is clear, a gentle breeze flows through her hair and she smiles as she takes in the great outdoors around her, lake and all.

There’s this little splotch of text, however, under the “after” picture. It reads,

“Time-accelerated dramatization.”

Hmm.

Are they for real? I hope someone (namely the art and copy team on this) had a good laugh. Sure it’s there as a legal disclaimer, but it’s a cartoon folks. I’m thinking we, as readers of the ad, would first have to believe that some parallel cartoon reality actually existed—like in Mary Poppins when they all hop into the sidewalk drawing—in order to expect cartoon-like results in our normal reality. Tracking with me?

But the American public is not that stupid.

Nor is it foolish when it comes to reading package labels. Here’s what the Oscillococcinum one has on its back (forgive the resolution):

Active Ingredient: Anas Barbariae Hepatis et Cordis Extractum 200CK HPUS; Inactive ingredients: sucrose, lactose.

Now, if you whip out your Cassell’s Latin Dictionary, you’ll find that the active ingredient is extract of duck liver and heart. The 200CK means that its gone through a series of 200 dilutions—with each one equating a 1:100 dilution. If you do the math, the level of “active ingredient” would seem to get rather miniscule, leaving almost…nothing. (In fact, the court filing for the Oscillo class action states that, given the dilution, “At this purported ratio, the probability of getting 1 molecule of the active ingredient of Oscillo in a regular dosage is approximately equal to winning the Powerball every week for nearly an entire year.” Someone has a sense of humor!)

For those who missed basic nutrition class, the inactive ingredients, sucrose and lactose are sugars.

Nothing—or almost nothing—and sugar is, well, sugar. Which is the basis for the Oscillo false marketing class action lawsuit.

I suppose Boiron deserves some kudos for creativity—on both fronts, product development and advertising. But that’ll only go so far to “reduce the duration and severity of flu symptoms” including body aches, headache, fever, chills and fatigue. And exactly how far is what the class action will determine now.

Tags: Boiron, Consumer Fraud, false advertising, Homeopathic remedy, Homeopathy, homeopathy-remedy-fraud, Oscillo, Oscillococcinum
Posted in Class Action, Consumer Fraud, Emerging Issues | 7 Comments »

LAS Lookout: Fastin Weight Loss Ad – Read the Small Print

January 5th, 2012. By AbiK

Note to self: when a one-page ad in a magazine has 12 daggers—those are those “†” symbols that lead you to some teeny-tiny footnote disclaimer—pause to ponder what the ad is really telling you.

It’s important as now that we’re in flu season, we’re seeing more and more homeopathic ‘remedy’ ads popping up with questionable claims and the telling footnote or two.

The 12-dagger ad above is actually a recent ad for Fastin, “the world’s most advanced weight loss aid ever developed!†” (there’s that dagger!). The ad appeared in Self magazine. And yes, it has 12—no joke, twelve—daggers in it, all leading to the footnote below. Don’t believe it? They’re all circled on the actual ad above.

Just about everything but where to buy Fastin has a dagger leading you to the disclaimer (the disclaimer is reprinted below.

In fact, even the doctor’s statement has the disclaimer. And there’s another tip-off to something potentially askew: try to locate some quick background info on Dr. Mark Wright. You can’t. Oh sure, he has his own website, but try to find him on doctor rating sites like RealSelf.com, Vitals.com, Avvo.com, or HealthGrades.com. He’s not there. He’s also not showing up as

Tags: Dr. Mark Wright, false advertising, Fastin, Homeopathic remedy, Homeopathy, homeopathy-remedy-fraud, weight loss
Posted in Consumer Fraud, Drugs/Medical | 1 Comment »

Off-the-Rack Gift Cards Newest Scam Target

December 23rd, 2011. By AbiK

Desperate for a holiday gift? No clue what they want? That’s when that strategically placed rack of gift cards in whatever store you’re in is like manna from heaven. It’s a plastic mall at your fingertips: Starbuck’s! Macy’s! Bed, Bath & Beyond!—even Cracker Barrel! The teacher, in-laws, crossing guard, and third cousin once removed? Gotcha covered.

Ah, but now there’s a gift card scam that’s going ’round and these gift card displays are the perfect target. Gift card scammers simply scan or copy the account number that’s visible on the backs of most gift cards. Then they put the card back on the rack and wait for someone to purchase it and, therefore, activate it. Once the card is activated, it’s currency. And that’s when the scammer goes online and shops a go-go.

Of course, most gift cards have a PIN number as well on the back of the card. But unless that PIN is hidden behind the packaging, it can be difficult to tell at first that the card has been tampered with. If the gift card PIN is only hidden by a scratch-off coating, all the scammer has to do is scratch it off—and how often have you picked up a gift card in a hurry and not really looked closely at the back of it?

Here’s how to avoid getting gift card scammed yourself:

1. Save the receipt. As with any purchase, your receipt is your proof of purchase (and proof of rightful owner). Most stores will replace the purchased balance of a lost or stolen gift card–but you need that receipt.

2. Look closely at the back of the gift card. If the card is in anyway damaged, or the PIN has been revealed, don’t buy it.

3. Go for e-certificates. Many retailers now offer the option online to purchase email gift certificates. Most will also offer you the option to either email the gift certificate directly to the recipient, or print it out to deliver in person.

Bottom line is remember: what’s convenient for you is probably also convenient for a scammer. Buyer beware. And happy holidays everyone!

Tags: Gift Card Scam, Gift Cards, Holiday Shopping
Posted in Consumer Fraud | 3 Comments »

Jersey Shore Bar Caught in Vodka Switch Scam

December 13th, 2011. By AbiK

Is it any wonder that New Jersey gets the rap it does—surely you saw the “revised” map of NJ that was going viral last week—when there are consumer fraud stories like this to report? Full disclosure: this is being penned in “Christie Country”, per the new map.

Our focus, however, for this gem is Brigantine, NJ—just north of Atlantic City.

It seems that the Laguna Grill and Martini Bar there had been serving up lower than top-shelf vodka in top-shelf vodka bottles. So, for example, maybe the label being poured was “Stoli” but the vodka hitting the glass was Popov. Or in this case, Burnett’s or Absolut. It’s a higher stakes version of the put-Catsup-in-a-Heinz-bottle scam that’s been the ruin of many a fine french-fry order.

Here’s the thing that makes this a stereotypically Jersey story. See, it’s not like any self-respecting bar-frequenting martini drinker has never heard of such a practice—that can happen anywhere. And, in a heavily trafficked bar such a thing can be mitigated by asking for a new bottle—it won’t go to waste, after all. So no—the fact that a vodka scam like this was going on is not, in and of itself, a Joisey moment. That honor is derived from the fact that these fools got caught—and caught badly!

If you’re going to scam straight-up vodka or vodka-based martini drinkers, you need to be a few steps ahead of them. And for heaven’s sake, don’t take your cues from Hansel and Gretel and leave a blatant trail—the object is to NOT be found.

According to CourierPostOline.com, not only did investigators—who searched the premises of Laguna Grill after a few tips—find a “large red funnel” in the bar storage area, but—and this is key—there was also a cardboard sign posted telling bar staff to save the empty bottles of top-shelf vodka brand.

That perhaps would’ve been enough of a trail to make investigators raise an eyebrow–but this gets better.

On the heels of denying any allegations of scamming customers with cheap vodka, Prudenzia “Maria” Pullella (backstory: she’s the bar manager, and the bar is owned by Dominic “Tony” Pullella, who happens to be a Brigantine Councilman—can’t make this sh*t up!)—another little discovery was made.

A little accounts receivable tracking revealed that, gee whiz, more top-shelf vodka was being sold than was being purchased! How could that be?

And so, Maria Pullella had a bit of egg on her face as the jig—jigger?—was up.

And now it’s penalty time. The beachfront Laguna Grill and Martini Bar will close for a seven-day period in the summer (high season! cha-ching!) and will also fork over a $23,000 fine. That’s a lot of vodka—top-shelf or not.

Tags: Brigantine NJ, Consumer Fraud, Laguna Grill and Martini Bar, Maria Pullella, Vodka Scam
Posted in Consumer Fraud | No Comments »