Attorney General's News Release

Jan. 14, 1999

Nixon recovers $7 million in 1998 enforcing state's consumer fraud laws

Jefferson City, Mo. — Through aggressive enforcement of the state's consumer fraud laws, more than $7 million -- including a record $2.2 million in restitution to consumers from mediation -- was recovered in 1998 from companies and individuals accused of defrauding Missourians, Attorney General Jay Nixon announced today.

"Our successful efforts in securing restitution, payments and civil penalties for the state of Missouri and its consumers send a message loud and clear that Missouri will not tolerate unlawful merchandising practices," Nixon said. "The amount we recovered in 1998 nearly doubles the amount obtained from the previous year."

Nixon's Consumer Protection Division represents the state in criminal and civil consumer fraud cases. In 1998, the division responded to more than 26,000 complaints and inquiries ranging from cramming and slamming to auto repair and travel scams.

Nixon obtained a multistate bankruptcy settlement in 1998 requiring the nation's largest direct mail sweepstakes company to pay $1.2 million in restitution to defrauded Missourians. Missouri's share was the largest obtained by 30 states.

Direct American Marketers was banned from mailing solicitations to Missourians after consumer protection attorneys sued the company for deceiving consumers into believing they had won a national sweepstakes. The company urged consumers to phone a 900 line to claim checks or other prizes. The call cost consumers more than $25, and the prize most won was a $1 check.

Missourians who believe they are victims of consumer fraud may call the Consumer Protection Hotline at 800-392-8222 or write to:

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818