Wasden urges business owners to guard against Attorney General email scam

(Boise) – Idaho Attorney General Lawrence Wasden is warning business owners to be on the lookout for emails sent by scammers posing as representatives from his office.

The emails indicate they were sent by the Attorney General, are generically addressed to “Business Owner” and inform recipients a complaint has been filed against them, Wasden said. 

The messages also include a link that purports to take recipients to a document that can be used to respond to the complaint. But the link is actually a zip file that installs a computer virus used to obtain sensitive information to help perpetrate identity theft and fraud, Wasden said.

“This is no different than any other scam that uses the names of government or law enforcement agencies in an effort to dupe consumers,” Attorney General Wasden said. “Constituents and business owners need to know that my office will never send unsolicited emails about complaints.”

Wasden said a business owner from northern Idaho notified the Consumer Protection Division last week after receiving a sham email. Similar email scams incorporating Attorneys General have been reported in other states, including recently in Illinois and Maryland. 

Consumers are encouraged not to open these emails or click on any links. Wasden said consumers should delete the emails and contact his office to report the scam.

The Consumer Protection Division can be reached at 1-800-432-3545.

Idaho Attorney General reaches settlement with makers of 5-hour Energy products

(Boise) – Attorney General Lawrence Wasden has reached a settlement with the companies that manufacture and market 5-hour Energy products.

The settlement, approved by District Judge Richard Greenwood this week, resolves a lawsuit filed by Wasden alleging Living Essentials, LLC, and Innovation Ventures, LLC, misrepresented their energy shot products, including whether consumers experience a “crash” after consumption and claims the products are recommended by doctors. Living Essentials and Innovation Ventures deny any violations of Idaho law.

Under terms of the agreement, the companies will not represent that 5-hour Energy products have sponsorships, benefits or ingredients they don’t have. 

“Ensuring companies make accurate statements about their products is important to consumers and the marketplace,” Attorney General Wasden said. “I’m pleased that we were able to reach a resolution of this case.”

Wasden filed a lawsuit in 4th District Court in May asserting violations of Idaho’s Consumer Protection Act and Consumer Protection Rules. Specifically, Wasden alleged the companies engaged in false, deceptive or misleading practices in advertising and promoting their products.

According to the settlement, the companies, for products to be sold in Idaho, will:

· Ensure that any new marketing materials for 5-hour Energy products that use the word “crash” shall use the words “no sugar crash” instead;

· Provide on labels warnings for women who are pregnant or nursing, and that their products are not recommended for children;

· In any advertising campaign, only use survey data if it was created, conducted and evaluated in an objective manner by qualified people who used methods generally accepted in the profession to produce accurate and reliable results;

· Continue to list the amount of caffeine in products and disclose that amount as a separately listed ingredient; and

· Not use testimonials or endorsements that do not comply with Federal Trade Commission rules.

The settlement also addresses how the companies market their products to minors, Wasden said.

For the next 3.5 years, the companies will not use or hire persons under the age of 18 to promote products or appear in ads. The agreement prohibits the use of the name, logo or mascot of any elementary, middle or high school in promotional materials related to products.

The settlement also bars the companies from promoting products at school events and using child oriented animated characters to market energy products.

The companies will pay $9,000 to the Attorney General for fees and costs of the investigation and litigation.

Boise Internet training company barred from Idaho

Will pay $100,000 to resolve consumer complaints

A Boise-based company that sold ecommerce training is prohibited from doing business in Idaho under terms of a legal settlement with Attorney General Lawrence Wasden. The company, eCommerce Support, LLC, also will pay $90,000 in restitution and reimburse the Attorney General $10,000 for the cost of his investigation.

Wasden said more than 70 consumers who purchased ecommerce training services from eCommerce Support will share in the restitution fund. The settlement resolves the Attorney General’s investigation and consumer protection lawsuit against the company.

“My office has seen an increase in complaints against ecommerce training companies located in Idaho,” Wasden said. “I encourage Idahoans considering starting an online business to learn all they can about any training company before they invest in ecommerce training. At a minimum, consumers should check with my Consumer Protection Division and the Better Business Bureau to see if there are complaints against the company with whom they are considering doing business.”

Wasden’s office began investigating eCommerce Support after consumers complained the company misrepresented the written materials and coaching services purportedly designed to help consumers develop Internet businesses. Consumers alleged they paid thousands of dollars to eCommerce Support based on the company’s false claims that consumers: were investing in a business; would earn a specific sum of money within a short amount of time; only had to work 10 hours per week to make money; could deduct the cost of the program from their taxes, and, among other things; and would receive a professional, functioning website.

Consumers in Idaho and throughout the United States claimed they paid eCommerce Support for coaching services, but the coaches failed to provide consumers with adequate time or instruction. eCommerce Support allegedly did not inform some consumers of their right to cancel or allow others to cancel when they contacted the company.

The settlement holds a $50,000 civil penalty in abeyance, pending eCommerce Support’s compliance with the settlement.

By late January, the Attorney General expects to contact the consumers who have filed complaints with his office and are eligible to receive payments. Although they will not be eligible for restitution, Wasden encourages other consumers who lost money to eCommerce Support and have not yet filed a complaint to do so. Consumer complaint forms are available from the Attorney General’s website at www.ag.idaho.gov or by calling 208-334-2424.