USA Baby in Ohio slapped with $400K fine, ordered to repay consumers


COLUMBUS – Attorney General Jim Petro today won court-ordered consumer restitution and payment of civil penalties against the owners of three USA Baby stores for providing substandard customer service and violating state consumer protection laws.

From the Cleveland Plain Dealer April 20:
USA Baby stores have been ordered to pay restitution to customers who never received items they paid for. Last fall, Ohio Attorney General Jim Petro sued the companies that formerly operated USA Baby stores in Westlake, Cuyahoga Falls, Sylvania and Powell, along with former owner Jim Lankey. More than 120 consumers have complained to his office about the stores. Ownership of the Westlake, Cuyahoga Falls and Sylvania stores has changed since the suit was filed. The current owner, Midwest Baby, is not a party to the lawsuit. Lucas County Common Pleas Judge Ruth Ann Franks ruled Wednesday that the stores accepted money from consumers even though the owner knew the companies' precarious financial situation made delivery unlikely. In addition to ordering consumers to be repaid, Franks ordered the former owners to pay a $400,000 fine. Consumers who believe they are entitled to refunds should contact the Ohio attorney general's office at 1-800-282-0515 or www.ag.state.oh.us.
From the Ohio Attorney General's web site:

Attorney General Jim Petro Wins Restitution From Baby Store
APRIL 19, 2006
COLUMBUS – Attorney General Jim Petro today won court-ordered consumer restitution and payment of civil penalties against the owners of three USA Baby stores for providing substandard customer service and violating state consumer protection laws.

The order was issued by Lucas County Court of Common Pleas Judge Ruth Ann Franks against Neo Baby Inc., Sunshiny Day Inc., Baby Bucks Inc., and James Lankey, which operated the USA Baby locations in Westlake, Cuyahoga Falls, Sylvania, and Powell.

“These companies sold products to consumers knowing that they would not be delivered,” Petro said. “It is particularly unconscionable to fleece new parents and the young children they are providing for.”

The court found that the defendants accepted money for baby furniture and accessories knowing that they were in a precarious financial position which could result in the consumers not receiving their purchased goods. The Consumer Protection Section of the Attorney General’s Office received 120 complaints about USA Baby.

Judge Franks ordered the defendants to pay restitution to consumers who made purchases at these USA Baby stores but did not get their merchandise or a refund. She also assessed $400,000 in civil penalties and ordered the defendants to cease doing business until the penalties and restitution are paid.

Consumers can file complaints with Attorney General Jim Petro’s office online at www.ag.state.oh.us or by calling 1-800-282-0515.

Posted: Wed - May 3, 2006 at 10:39 AM          

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