State officials announce $1M settlement, Consumer refunds
State officials last week announced a major settlement that could refund more than $500,000 to Alabama consumers and bring in nearly $1 million to the state.
Attorney General Luther Strange and Agricultural and Industries Commissioner John McMillan on Friday announced the agreement with Guardian Pest Control Inc., Knox Pest Control and J.J.S.K Solutions Inc. These companies will be required to reform their business practices as a result of the settlement.
The settlement comes after a consent decree was filed in the Shelby County Circuit Court that raised allegations stating the companies sold termite protection agreements that violated the Alabama Deceptive Trade Practice Act, in addition to laws and regulations of the Alabama Department of Agriculture and Industries.
The state claimed the companies marketed and sold warranties that offered protection against structural pests, but failed to provide treatment or control measures to prevent pests.
The settlement mentioned 517 consumers in Alabama that will receive their choice of service credits for termite treatments and inspections, or refunds totaling $539,458.
Eligible consumers will be notified by the companies.
The companies will also pay $862,000 in penalties and $125,000 for attorney fees. The different firms have agreed to revise their advertising practices and consumer contracts.