(KRON) — San Francisco City Attorney David Chiu secured $1 million from Personnel Concepts on Wednesday.
This California-based company sold workplace labor posters to local businesses by falsely marketing and impersonating itself as the government, which, according to Chiu, affected about 13,000 local businesses in total.
“This company preyed on small businesses with deceptive marketing campaigns that impersonated government actors,” said City Attorney Chiu. “I’m glad our efforts ended their egregious business practices and will compensate affected California consumers.”
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Businesses are required to post workplace notices, such as “Know your rights” posters, under local, state, and federal law. According to the complaint, “[Personnel Concepts] sent deceptive solicitations designed to look like government mail” to these local businesses.
Once a business purchased a poster, the complaint said Personnel Concepts began “an aggressive telemarketing campaign falsely insisting that additional posters and annual subscription packages must be purchased to comply with the law and avoid fines.”
If businesses refused to pay the invoice or dispute the charges, “[Personnel Concepts] demanded payment through a collection agency,” which, according to the complaint, negatively impacted consumers’ credit reports.
SF Superior Court approved Personnel Concepts to pay $800,000 in restitution fees and $200,000 in civil penalties. Here are a couple of changes the company is tasked to make, according to the city attorney’s office:
Comprehensive changes to its mail solicitations and telemarketing practices
Undergo training
Terminate third-party collection activity
Remove negative information on credit reports of affected customers
A complaint was filed against Personnel Concepts and its parent company in San Francisco Superior Court in March of 2023.
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