Marketing Fraud

Denver, CO: (Dec-19-07) Colorado Attorney General John Suthers' office brought charges against Thermal Advantage Inc., alleging that the home improvement company engaged in deceptive advertising. Thermal Advantage, formerly known as T.A. Empire Inc., was accused of intentionally deceiving and financially injuring Colorado consumers. The company and Eugene Applehans, the company's president, were named as defendants in the suit. The suit claimed that the company ran ads in 2005 through 2007 claiming that consumers could take part in a test program to receive all new windows and would be compensated for the use of their homes. The consumers responding to the offer are said to have wound up paying the same price as other customers. The suit also said that the company failed to fully disclose the limitations on its claim that customers would save 40% on their energy bills.

As part of a settlement reached, sources stated that Thermal Advantage reached a settlement with the state, agreeing to discontinue allegedly misleading advertising. Additionally, the company also agreed to pay $50,000. $30,000 of the $50,000 civil penalty was suspended on condition that the company stops its alleged violations of the Consumer Protection Act. The attorney general now accused the company of violating terms of the settlement and ordered that the company stop its allegedly deceptive ads, plus pays the suspended $30,000 penalty and additional penalties of up to $10,000 per violation. [DENVER BUSINESS JOURNAL: WINDOW FRAUD]

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Published on Dec-21-07