In a notable legal victory for San Francisco, City Attorney David Chiu has secured a million-dollar judgment against Personnel Concepts, a company that has admitted to using government-impersonating marketing tactics to mislead small business owners. The judgment, which amounts to $1 million, was reached in the San Francisco Superior Court and promises substantial restitution for the businesses affected.
The case against Personnel Concepts centers on allegations that the company deceived businesses through mail and telemarketing, convincing them to purchase labor law compliance posters under the ruse of government authority. More than 13,000 California businesses will receive over $800,000 in combined restitution, with almost $200,000 set aside for civil penalties. "This company preyed on small businesses with deceptive marketing campaigns that impersonated government actors," City Attorney Chiu said, according to a statement on his office's website.
The stipulated judgment also demands Personnel Concepts overhaul its marketing strategies. It requires the cessation of third-party collection tactics and the elimination of negative credit report entries for the consumers involved. It mandates comprehensive changes to its mail solicitations and telemarketing practices, topped with requisite training for its staff.
It's worth noting that while selling labor law compliance posters is a legitimate practice, governments offer these resources for free. Personnel Concepts, a California-based entity, sold the posters and engaged in aggressive telemarketing campaigns, misleading businesses about the necessity of additional purchases to avoid legal fines. The complaint, lodged by the City Attorney's office on March 8, 2023, accused Personnel Concepts and its parent company of breaching California’s Unfair Competition Law and more. The People of the State of California v. Brady Corporation, et al. can be referenced under Case No. CGC-23-605044, with the court-approved judgment available for public review.
