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‘Foot soldiers’ cause consumer woes


Today's News-Herald
Published Tuesday, February 2, 2010 12:31 PM MST

Even though we live during a time that features the best that technology can offer, it’s still the “foot soldiers” who cause North Dakota consumers the most angst on a daily basis.


Attorney General Wayne Stenehjem reports the largest number of complaints his Consumer Protection Division received from us in 2009 involved transient merchants. His office saw 175 individual complaints made about transient merchants, involving a total of 22 companies.

The majority of the complaints were against three companies - APX Alarm Security Solutions Inc. (78), Security One International Inc. (51) and Utility Management Associates Inc. (27). APX and Security One sell security systems.

The complaints involved operating without a transient merchant license and/or failing to comply with the state’s cancellation laws. Stenehjem reports the companies paid $205,600 to the state.

“Out-of-state companies are required to obtain a transient merchant license and bond before doing business in this state,” Stenehjem states in a news release that announced the yearly totals. “This helps to protect North Dakota consumers from unscrupulous operators.” Out-of-state companies typically conduct business door-to-door or solicit sales by offering fee meals in exchange for attending a sales presentation, the AG’s office states. The sales representatives often use high-pressure, often dubious sales tactics to get consumers to buy an overpriced product or service they are promoting. Once the sale is completed, the representatives move on to the next city or state. The consumer is not given information about the right to cancel the sale, as required under state law.

Stenehjem cautions residents that before agreeing to purchase anything from a company using door-to-door or other high-pressure sales tactics, to ask to see the salesperson’s transient merchant license. Every person of the company is required to carry one in North Dakota and may be required to have a license from the city.

If the salesperson can’t produce the required license(s), Stenehjem recommends calling local law enforcement.

The busy year with transient merchant complaints knocked telemarketing complaints off the top of the annual list. Internet consignment stores drew the second largest number of complaints at 138, followed by telemarketing at 115.

Mail orders still generate a good number of complaints, coming in fourth in 2009 at 91, with magazines next at 84. Cellular termination/premium fees tied with auto warranty/repair complaints at 56 each, while home improvements generated 55 complaints, debt adjustment/credit counseling 34 and satellite provider billing issues 25 to round out the top 10 categories for complaints.

Stenehjem reports the division also received 264 complaints for do not call law violations. Residents registered on the do not call list filed 143 complaints, with an additional 119 complaints relating to the use of prerecorded messages.

The division conducted 26 investigations and took action against firms that resulted in over $33,000 in fines, settlements and judgements.

The bottom line for the year is the division recovered $1.1 million for the state and returned an additional $587,600 to consumers while processing 1,028 overall complaints that resulted in legal action against 63 firms. Residents who feel they have been wronged in a business dealing can rest assured there is a place to voice your concerns in Bismarck. If you have a consumer problem or question, call the Consumer Protection Division at 701-328-3404, toll free at 800-472-2600 or 800-366-6888 (TTY).

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