Ohio AG Sues Robocalling Car Warranty Firms for Deceptive Practices

Ohio Attorney General Dave Yost (R) sued six individuals and six companies in the Franklin County Court of Common Pleas Wednesday, alleging in his complaint (docket 23-cv-000047) they used illegal robocalls to identify sales leads so they could pitch purported car warranties to Ohio residents. Yost announced the complaint Thursday. The state cited defendants Pelican Investment Holdings, Dimension Service, Autoguard Advantage, National Administrative Service, Falcon Endeavors and MB Holdings and certain owners and officers for violating Ohio’s consumer protection laws. The companies committed unfair or deceptive practices by initiating phone solicitations, directly or as a result of a third party acting on their behalf, and “misrepresenting the nature” of the auto warranties being sold, in violation of the state’s Consumer Sales Practices Act (CSPA), alleged the complaint. The companies also acted as telephone solicitors without filing a copy of a surety bond with the state, violating Ohio’s Telephone Solicitation Sales Act (TSSA), said the complaint. The prerecorded messages failed to properly identify the calling party and falsely claimed the call was about extending the consumer’s auto warranty and was affiliated with the auto manufacturer, the complaint said. The plaintiff seeks a permanent injunction enjoining the defendants from doing business under their or any other name, fines not less than $1,000 or more than $25,000 for each violation of the TSSA and a penalty of up to $25,000 for each violation of the CSPA, plus expenses, fees and court costs.