Utahns behind an e-cigarette company that was cited by the state in 2014 for misleading advertising may be at it again under a new banner.
Truth in Advertising, a non-profit consumer watchdog group, filed a complaint with the state after being contacted by consumers about a new Utah company known as O2PUR.
Consumers complained of deceptive advertising offering a "free" starter kit even though it requires a $14.95 purchase, and alleged that O2PUR made monthly $69.95 charges on their credit cards without their consent.
Truth in Advertising's legal director, Laura Smith, said radio ads for O2PUR sounded similar to ads run by a different company, Vapex, which previously was fined by regulators and no longer is licensed to do business in Utah. Smith claims that two members of Vapex's management, Scott Barth and Kourntey Salavatori, violated the terms of their settlement with the state by continuing to mislead consumers.
Jennifer Bolton, public information officer for the Department of Commerce, declined to comment on whether the state is investigating O2PUR.
Utah's Consumer Protection Division in 2014 fined Vapex $822,500 for false advertising. The division put out a news release saying the fines showed "the state was cracking down on these companies." Regulators later quietly slashed the fine to $16,450 as part of a settlement in which Vapex executives agreed not to make false or unsubstantiated claims, such as the starter kits were free or that there were proven health benefits to using the company's products.
Bolton confirmed that the reduced fine was paid.
Barth and Salavatori, who were named in the Vapex settlement, appear to be involved in O2PUR.
Salavatori is listed in state records as the registered agent for the company. Barth, whose name does not appear on O2PUR's state registration, lists himself as O2PUR chief operating officer on his Linkedin profile.
Barth and Salavatori did not respond to requests for comment.
Smith, of Truth in Advertising, said "I have no doubt with the clear violations of the settlement agreement the state will take swift action."
Truth in Advertising, a non-profit consumer watchdog group, filed a complaint with the state after being contacted by consumers about a new Utah company known as O2PUR.
Consumers complained of deceptive advertising offering a "free" starter kit even though it requires a $14.95 purchase, and alleged that O2PUR made monthly $69.95 charges on their credit cards without their consent.
Truth in Advertising's legal director, Laura Smith, said radio ads for O2PUR sounded similar to ads run by a different company, Vapex, which previously was fined by regulators and no longer is licensed to do business in Utah. Smith claims that two members of Vapex's management, Scott Barth and Kourntey Salavatori, violated the terms of their settlement with the state by continuing to mislead consumers.
Jennifer Bolton, public information officer for the Department of Commerce, declined to comment on whether the state is investigating O2PUR.
Utah's Consumer Protection Division in 2014 fined Vapex $822,500 for false advertising. The division put out a news release saying the fines showed "the state was cracking down on these companies." Regulators later quietly slashed the fine to $16,450 as part of a settlement in which Vapex executives agreed not to make false or unsubstantiated claims, such as the starter kits were free or that there were proven health benefits to using the company's products.
Bolton confirmed that the reduced fine was paid.
Barth and Salavatori, who were named in the Vapex settlement, appear to be involved in O2PUR.
Salavatori is listed in state records as the registered agent for the company. Barth, whose name does not appear on O2PUR's state registration, lists himself as O2PUR chief operating officer on his Linkedin profile.
Barth and Salavatori did not respond to requests for comment.
Smith, of Truth in Advertising, said "I have no doubt with the clear violations of the settlement agreement the state will take swift action."
Resource: http://www.sltrib.com/home/3528908-155/watchdog-group-claims-e-cigarette-company-back
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