OLYMPIA, Wash.-Attorney General Bob Ferguson’s Office has filed a lawsuit against a repeat offender targeting small businesses across the country, including in Washington State.
The Consumer Protection Lawsuit against Labor Law Poster Service was filed in King County and alleges the agency violated the state Consumer Protection Act more than 300,000 times over the course of at least seven years by sending hundreds of thousands of deceptive solicitations targeting small businesses.
According to the AG’s Office, Labor Law Poster Service mailed at least 325,750 deceptive letters to small businesses between 2016 and 2022, including a law firm, a fitness franchise, a daycare center, a veterinarian, a church and a company that transports people who use wheelchairs to non-emergency medical appointments.
The fraudulent scheme allegedly run by three brothers in Michigan reportedly targets small businesses with what appear to be legitimate bills from government agencies.
Labor Law Poster Service, formerly known as Mandatory Poster Agency was first investigated by the AG’s Office in 2008 and entered into a legally enforceable agreement that it would provide full refunds to Washington businesses and stop the unlawful conduct to avoid a penalty.
A Consumer Protection lawsuit was filed against the agency in 2014 and in 2016 it was ordered to pay civil penalties and restitution of $1.15 million in King County Superior Court, according to the AG’s Office.
What the latest Consumer Protection Lawsuit seeks:
Full restitution for Washington small businesses harmed by the deceptive conduct, plus interest.Civil penalties for every deceptive letter sent to Washington businesses.Civil penalties of up to $125,000 each for every violation of Labor Law Poster Services 2008 agreement with the Washington AG’s Office.
