Attorney General's News Release

October 31, 2008

Nixon obtains $75,000 settlement with Texas charity clothing business over telephone harassment of Missourians

St. Louis, Mo. - A Texas business that routinely telephoned Missourians who had asked not to be called in its solicitations will make a payment of $75,000 to the state and develop a series of policies and procedures to ensure further compliance with state consumer protection laws, under a settlement obtained today by Attorney General Jay Nixon. Nixon reached the assurance of voluntary compliance with Merchandise Pick-Up Service, Inc. of Houston, which does business as Charity Clothing; and its owner, Richard Ferrer-Westrop.

According to Nixon, the Attorney General's Office received complaints from consumers who were repeatedly contacted by Charity Clothing, even after some of the consumers told the defendants to cease calling them. Charity Clothing is in the business of soliciting, for profit, donations of clothes and other merchandise on behalf of third-party entities.

According to today's agreement, filed in St. Louis City Circuit Court, the defendants will establish, implement and maintain a number of policies and procedures to ensure future compliance with state consumer protection laws, including:

• Providing the Attorney General's Office with a detailed, written description of all policies and procedures to ensure compliance with the law;
• Instituting a training program for all its employees who engage in telephone solicitation with instruction in customer relations, etiquette, company policies and compliance with state law;
• Maintaining a do-not call list of those Missouri consumers who do not wish to be contacted and refrain from contacting any consumers on that list;
• Maintaining detailed records that prove the defendants are in compliance with all state and federal consumer protection laws; and
• Conducting reasonable random monitoring of its employees to ensure they are complying with state and federal consumer protection laws.

The defendants are also required to make a payment of $75,000 to the state as part of the agreement. In addition, the defendants agree that any violation of today's agreement may result in contempt of court proceedings and civil penalties of up to $2,000 per violation, and up to $5,000 for any future knowing violation of Missouri consumers protection laws.