Michigan residents can breathe a relief following the Attorney General's crackdown on two companies accused of deceptive marketing practices. According to the Michigan Department of Attorney General, Dana Nessel has aimed at Baker’s Best Health and its twin company, American Master Products, by filing two Assurances of Voluntary Compliance and Discontinuance to remedy potentially exploitative business tactics.
A thorough investigation launched by the Attorney General's office was spurred by consumer complaints alleging that both companies sent out postcards to Michigan homes with offers that were too good to be true. Baker’s Best Health, on the one hand, touted a "gift" and a risk-free trial for a health product but failed to disclose the linked obligation of trial participation appropriately. The company made the mistake of openly suggesting that recipients would "owe nothing," but this turned out to be misleading as consumers were later hit with a billing invoice with undisclosed terms. These terms included automatic enrollment into a subscription service, additional charges, and a clause indicating the potential sharing of personal information with third parties. "Consumers should remember that if an offer sounds too good to be true, it probably is," Nessel said in the press release, urging residents always meticulously to read the fine print.
American Master Products (AMP) was accused of near-identical indiscretions. The company sent out postcards offering a "gift" and a risk-free, 21-day book trial without clearly disclosing that accepting the gift would bind the consumer to a preview of the book. The ensuing billing invoice disclosed similar previously concealed information to Baker’s, including an automatic billing arrangement for subsequent books.
Due to the Assurances, both companies have agreed to cease any unfair or deceptive business practices moving forward. They are also required to cancel all outstanding balances that are deemed "past due" or "overdue" for consumer accounts nationwide and to honor requests from consumers to be placed on a "do not contact" list. Additionally, they are to refrain from mailing or delivering any products unless expressly requested by a customer. They are committed to addressing billing inquiries and immediately issuing full refunds when informed consent records are lacking. The press release details how the Attorney General is also re-issuing a consumer alert to help citizens reduce junk mail and learn to protect themselves from deceptive practices.
