Court order holds Personnel Concepts accountable for scamming small businesses and provides restitution to over 13,000 affected California consumers
SAN FRANCISCO (October 23, 2024) — City Attorney David Chiu announced today that his office secured a $1 million judgment against a company, Personnel Concepts, which markets workplace labor posters to small businesses through mail solicitations and telemarketing calls. As alleged in the complaint, Personnel Concepts violated several California laws by deceiving business owners through government impersonation and demanding payment through a collection agency when a business disputed charges or attempted to decline the company’s products and services.
The stipulated judgment, approved by the San Francisco Superior Court, will provide over $800,000 in restitution to more than 13,000 affected California businesses and nearly $200,000 in civil penalties. In addition to monetary relief, the stipulated judgment requires the company to make comprehensive changes to its mail solicitations and telemarketing practices, undergo training, terminate third-party collection activity, and remove negative information on credit reports of affected customers.
“This company preyed on small businesses with deceptive marketing campaigns that impersonated government actors,” said City Attorney Chiu. “I’m glad our efforts ended their egregious business practices and will compensate affected California consumers.”
Background
Businesses are required to post workplace notices that inform employees of their rights under local, state, and federal labor and employment laws. While it is legal to sell posters with these notices, governments make them available to businesses free of charge. The required workplace notices differ by the location, size, and nature of a business, and thus, businesses should carefully scrutinize whether commercially-produced labor posters satisfy all applicable requirements.
Personnel Concepts is a California-based company that sells labor law compliance posters and other related products. As alleged in the complaint, the company sent deceptive solicitations designed to look like government mail to California businesses. Once a business purchased a poster, Personnel Concepts began an aggressive telemarketing campaign falsely insisting that additional posters and annual subscription packages must be purchased to comply with the law and avoid fines. If businesses refused to pay the invoice, disputed the charges, or attempted to decline the products and services, Personnel Concepts demanded payment through a collection agency, negatively impacting consumer credit reports.
A complaint was filed against Personnel Concepts and its parent company in San Francisco Superior Court on March 8, 2023, alleging violations of California’s Unfair Competition Law and other California laws.
The case is People of the State of California v. Brady Corporation, et al., San Francisco Superior Court, Case No. CGC-23-605044. The stipulated judgment can be found here.
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