At FTC’s Request, Court Permanently Stops A-1 Janitorial Office Supply Scam

At the Federal Trade Commission’s request, a U.S. district court judge permanently halted a New York-based office supply scam operated by a business known as A-1 Janitorial. In late 2017, the FTC charged the defendants with targeting small businesses and charging them for supposedly free samples of cleaning and other products.

Under the court order settling the FTC’s charges, the defendants are barred from such illegal conduct and will pay $2.7 million for consumer refunds.

“The defendants tricked small businesses into paying for products they didn’t order and free samples that weren’t free,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “We’re committed to taking action against schemes that target small businesses, and we have free – actually free – resources to help them avoid fraud at ftc.gov/smallbusiness.”

According to the FTC’s October 2017 complaint, the defendants called small businesses throughout the United States and Canada, offered a free sample of a cleaning or other office product, shipped the sample to those businesses, and then billed them for the full cost of the product, even when they refused to accept it. The defendants’ invoices typically named an employee in the targeted business or organization, which led many recipients to pay since they thought the employee had ordered the products.

After the first shipment, the defendants often sent additional shipments and new invoices. Consumers who complained were told the extra shipments were part of the initial order. Some consumers paid just to stop the defendants’ repeated contacts, but more shipments then followed. The defendants often denied refund requests, claiming that, as chemicals, their cleaning products could not be returned.

The court order settling the FTC’s charges bars the A-1 Janitorial defendants from misrepresenting that they will send consumers a sample of their goods at no cost, that consumers have ordered and agreed to pay for goods shipped to them, and any other material fact.

In connection with their telemarketing efforts, the order bars the defendants from: 1) misrepresenting the total cost to buy, receive, or use the goods, including by falsely offering a free sample; 2) making false and misleading statements to induce any consumer to pay for goods or services, or to make a charitable contribution; and 3) failing to disclose that the purpose of the call is to sell goods or services.

The order also prohibits the defendants from shipping unordered merchandise, except for clearly marked free samples, and from billing or contacting consumers seeking payment for unordered merchandise or free samples.

Finally, the order imposes a $2.7 million judgment against the defendants, to provide refunds to defrauded consumers. It also prohibits the defendants from collecting payments from consumers for any goods or services sold before November 2, 2017.

The Commission vote approving the proposed court order was 5-0. A complete list of the settling defendants appears in the order. The United States District Court for the Northern District of Illinois, Eastern Division, has now entered the final order.

The FTC would like to thank the Office of the Illinois Attorney General, the Office of the Kansas Attorney General, and the Better Business Bureaus of Chicago and Northern Illinois, Manitoba and North West Ontario, New Jersey, and Metropolitan New York for their invaluable assistance in this matter.

NOTE: Stipulated final orders or injunctions, etc. have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources. Find data and trends about fraud such as imposter scams in your state by going to our Tableau Public website and clicking on your state.

IR Press

Recent Posts

OCC Issues Annual Report for 2024

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today published its 2024 Annual Report.…

2 days ago

OCC Announces Enforcement Actions for December 2024

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against…

3 days ago

Treasury Maintains Pressure on Houthi Procurement and Financing Schemes

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned…

4 days ago

Treasury Sanctions Georgian Ministry of Internal Affairs Officials for Brutality Against Protesters, Journalists, and Politicians

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is…

4 days ago

Treasury Maintains Pressure on Iranian Shadow Fleet

WASHINGTON — Today, the United States Department of the Treasury is imposing sanctions on four…

4 days ago

Treasury Releases Report on the Uses, Opportunities, and Risks of Artificial Intelligence in Financial Services

WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) released a report following the issuance of…

4 days ago