Judgment against company that sent deceptive mailers to AZ businesses

Posted: Updated:
(Source: Arizona Attorney General's Office) (Source: Arizona Attorney General's Office)
(Source: Arizona Attorney General's Office) (Source: Arizona Attorney General's Office)
PHOENIX (3TV/CBS 5) -

Attorney General Mark Brnovich announced that there will be a consent judgment against Mandatory Poster Agency, Inc. and its owners for $400,000.

Mandatory Poster Agency is receiving the judgment for sending government "Annual Minutes" lookalike mailers.

According to a news release, the judgment resolves a 2015 consumer fraud lawsuit filed against the business.

Mandatory Poster has also reportedly agreed to pay $175,500 in restitution to Arizona businesses who responded to the 2013 "Annual Minutes Requirement Statement" solicitation.

"Every Arizona business who responded to the mailer will have the opportunity to receive a full refund," said Brnovich. "Scamming businesses with phony government lookalike notices is unacceptable. These types of scam mailers will not be tolerated in Arizona and our office will take aggressive legal action to stop them."

The Michigan-based Mandatory Poster Agency was supposedly operating in Arizona under the unregistered trade name Corporate Records Service.

The company allegedly sent out nearly 65,000 deceptive solicitations to Arizona businesses in 2013, instructing that each business pay $125 to fulfill its "Annual Minutes Requirement."

Over 1,700 business reportedly responded.

A Maricopa County Superior Court found that the official-looking mailer gave the deceptive impression that it was sent by a government agency and that responding and paying $125 was required.

The court rejected the argument that disclaimers in the mailer cured its deceptiveness, according the news release.

The consent judgment with Mandatory Poster Agency, Inc. reportedly required the company and its owners not only to pay restitution to consumers but also pay another $125,000 to the state in civil penalties.

The release stated that the agency also required the company to reimburse the state $100,000 in attorneys' fees.

The judgment reportedly restricts Mandatory Poster from mailing the "Annual Minutes Requirement Statement" or any other deceptive mailer to Arizona businesses.

The news release states that Mandatory Poster will be subject to civil penalties of up to $25,000 per violation should it violate the consent judgment.

The Arizona Corporation Commission does have an "Annual Report" requirement that Arizona businesses must comply with.

The Attorney General's Office is currently contacting Arizona consumers believed to be eligible for a restitution payment in connection with this settlement.

Anyone who responded to the "Annual Records Requirement Solicitation" and has not received a refund is eligible for one if they respond to a notice sent out by the Attorney General's Office.

Complaints can be filed by phone at 602-542-5763 in Phoenix, 520-628-6504 in Tucson or 800-352-8431 outside of metro areas, or online by visiting the Attorney General's website at https://www.azag.gov/complaints/consumer.

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Copyright 2017 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.


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