BALTIMORE (Legal Newsline) – Maryland Attorney General Douglas Gansler announced a settlement on Friday with two air duct cleaning companies and their owners to resolve allegations the companies failed to inform consumers of their contract cancellation rights.
Gold Air Services Inc.; Mountain Air Services Inc.; and their owners, Shiran Atias, Shiri Leon and Shay Leon, allegedly violated the Maryland Consumer Protection Act and the Maryland Door-to-Door Sales Act. While offering and selling air duct cleaning, mold treatment services and carpet cleaning, the defendants allegedly used contracts that did not provide consumers with notice of their three-day right to cancel the purchases.
Gansler alleged the businesses also violated the Maryland Consumer Protection Act by misrepresenting the consumers’ right to cancel.
“The cancellation provision is in place to protect consumers from high-pressure sales tactics and impulse purchases that they might later regret,” Gansler said. “Businesses that fail to notify consumers of these rights should be aware that such neglect will not be tolerated.”
Under the terms of the settlement, Gold Air Services, Mountain Air Services and the companies’ owners must pay $88,500 in penalties and costs, $50,000 of which remains suspended if the defendants comply with all settlement terms. The companies and owners must also comply with consumer laws going forward and provide Gansler’s Consumer Protection Division with copies of all contracts they intend to use for door-to-door sales in Maryland.