Calif. company violates MO false advertising judgment

Despite winning a judgment against California-based UST Development Inc. and owner David Bell, Attorney General Chris Koster says the company may still be distributing misleading advertisements to Missouri businesses.

Koster sued UST Development alleging the company advertises its business phone system services through distributing deceiving solicitations to businesses and government agencies that look like phone bills due for payment. The Consumer Protection Division of the attorney general’s office has received 80 complaints regarding the solicitations, according to a news release.

"My office will not tolerate businesses that attempt to deceive consumers into signing up for a service they do not want or paying money they do not owe,” Koster said in the release. “We will continue to protect Missouri consumers by pursuing individuals and companies that break the laws of our state.”

The March 25 judgment ordered UST Development and Bell to pay $60,000 in civil penalties to the state for its illegal practices and to reimburse the state $3,750 for the investigation and prosecution of the case. The judgment also prohibits UST Development and Bell from doing business in the state and from sending solicitation to Missouri consumers.

Washington suit
Koster has filed another false advertising suit against Washington-based DNS Services Inc. and its president Glenn Loehr, alleging that DNS sent solicitations to Missouri consumers regarding its Internet backup services that were formatted like an invoice or bill for payment, according to a separate news release.

The invoices read, "Thank you for your payment” and “Please detach and return this portion with your payment.”

Koster is seeking a court order prohibiting DNS and Loehr from sending any additional solicitations or advertisements to Missouri consumers or businesses. The suit also seeks civil penalties against the companies and restitution for any Missouri consumer who has suffered a loss.