Accomplishments of the Division - 2024

This vehicle dealership and its owner entered into an Assurance of Voluntary Compliance (“AVC”) with our office to resolve allegations that it failed to register and/or title purchasers’ vehicles and/or deliver the associated documents to consumers; represented that vehicles sold to consumers in emissions-required counties had valid emissions certificates when they did not; and attempted to enforce oral contracts relating to the vehicles they sold. The settlement requires the business to comply with the Fair Business Practices Act and with Georgia law regarding emissions inspections; submit to a two-year monitoring process; cease collection of deposits prior to test drives and/or vehicle inspections by consumers; cease collection of deposits to reserve or hold a vehicle; and pay penalties in the amount of $95,000, a portion of which will be waived if the business does not violate any terms of the AVC within the two-year monitoring period. 

Our office issued a Cease and Desist Order and a Civil Penalty Order to Certified Motors, LLC (“Certified Motors”) and its principal, Antwon Tolbert, for alleged violations of the Georgia Fair Business Practices Act. 

Under the Motor Vehicle Certificate of Title Act, vehicle dealerships are required to apply for a certificate of title in the buyer’s name within 30 days of the transfer of the vehicle and to furnish the buyer with the documents needed to register and obtain a tag for the vehicle. An investigation into the practices of Certified Motors by the Attorney General’s Consumer Protection Division revealed that the dealership routinely failed to apply for vehicle titles within the requisite 30 days, resulting in consumers having to choose between driving their vehicles without a valid registration sticker or not driving their newly purchased vehicles at all. Consumers also complained of wrongful repossession practices, quality-of-vehicle issues, and failure to provide sales documents. One consumer who was still waiting for Certified Motors to send in the title application for his vehicle was actually arrested for driving with an expired temporary operating permit. 

In resolution of these allegations, the Attorney General’s Office has ordered Certified Motors, LLC and Mr. Tolbert to pay a civil penalty to the State in the amount of $320,000 and to immediately cease and desist from conducting business in violation of Georgia’s Fair Business Practices Act, and specifically from representing that the company will register and/or title purchasers’ vehicles within a certain period and failing to do so.

Our office alleged that these automobile dealerships violated the Fair Business Practices Act by deceptively advertising vehicles offered for sale by listing crossed-out prices labeled “MSRP” or “Hendrick Price” without listing the actual sales price, leading consumers to assume that the sales prices were below the crossed-out values, when, in fact, the business included undisclosed mandatory add-ons in their sales prices, making the actual sales prices higher than the ones crossed out in their advertisements. The businesses have entered into an Assurance of Voluntary Compliance with our office, in which they have agreed to bring their sales and advertising practices into compliance and to pay the State $10,000. 

Our office alleged that this vehicle dealership violated the Truth in Lending Act by advertising the amount of a downpayment for financed vehicle sales without clearly and conspicuously disclosing the terms of repayment and/or the annual percentage rate; misrepresented the total down payment required for purchase of vehicles by failing to include the dealer service fee in the advertised price; and failed to disclose that advertised terms relating to offers of credit for financed vehicles were dependent on credit approval. In resolution of these allegations, the business has entered into a settlement, in which it has agreed to fully comply with the Fair Business Practices Act and to pay a penalty of $2,000.

The Attorney General’s investigation into this used vehicle dealership revealed that it deceptively advertised vehicles offered for sale by listing a down payment amount, but then requiring an additional deferred down payment amount as a condition of purchase. We also alleged that the dealer further violated the Fair Business Practices Act (“FBPA”) by failing to clearly and conspicuously list mandatory Truth in Lending Act disclosures. To resolve these allegations, the business entered into an Assurance of Voluntary Compliance, requiring it to conform its advertising to the FBPA and pay a penalty of $8,000.

Our office alleged that this vehicle dealership failed to register and/or title purchasers’ vehicles within the requisite 30 days and that it also sold vehicles that lacked a valid certificate of emission inspection to Georgia consumers residing in counties where such a certificate is required by law. In view of these alleged violations, we ordered the company to pay a civil penalty in the amount of $250,000 and to immediately cease and desist from conducting business in violation of the Fair Business Practices Act.

Attorney General Chris Carr was part of a coalition of 50 Attorneys General that reached a settlement with Marriott International, Inc. as the result of an investigation into a large multi-year data breach of one of its guest reservation databases. The Federal Trade Commission, which coordinated closely with the states throughout this investigation, reached a parallel settlement with Marriott. Under the settlement with the Attorneys General, Marriott has agreed to strengthening its data security practices using a dynamic risk-based approach, provide certain consumer protections, and make a $52 million payment to states. Georgia will receive $1,256,173.00 from the settlement.

Marriott acquired Starwood in 2016 and took control of the Starwood computer network in 2016. However, from July 2014 until September 2018, intruders in the system went undetected. This led to the breach of 131.5 million guest records pertaining to customers in the United States. The impacted records included contact information, gender, dates of birth, legacy Starwood Preferred Guest information, reservation information, and hotel stay preferences, as well as a limited number of unencrypted passport numbers and unexpired payment card information. 

The settlement resolves allegations by the Attorneys General that Marriott violated state consumer protection laws, personal information protection laws, and, where applicable, breach notification laws by failing to implement reasonable data security and remediate data security deficiencies, particularly when attempting to use and integrate Starwood into its systems.

Under the terms of the settlement, Marriott has agreed to strengthen and continually improve its cybersecurity practices. The settlement terms are grounded in a well-developed risk-based approach in which Marriott not only needs to conduct an annual enterprise level risk assessment but must also perform risk analyses throughout the year for changes to security controls. Those ongoing risk assessments must address the criteria of “harm to others” – which would include potential harm to consumers.  

As part of the settlement, Marriott will give consumers specific protections, including a data deletion option, even if consumers do not currently have that right under state law. Marriott must offer multi-factor authentication to consumers for their loyalty rewards accounts, such as Marriott Bonvoy, as well as reviews of those accounts if there is suspicious activity. 

Our office filed suit against MV Realty and certain affiliates over allegations that the companies used unlawful and deceptive means to mislead cash-strapped homeowners into signing a 40-year agreement for what is essentially a predatory financial product. 

As alleged in the complaint, in Georgia, MV Realty widely and aggressively promoted its deceptively branded “Homeowner Benefit Program” on websites and social media and through a massive telemarketing operation that included over 550,000 calls to Georgia consumers, many of whom were on the FTC’s Do Not Call Registry. MV Realty presented the Homeowner Benefit Program as a way to “get cash without borrowing” and promised consumers that they could keep the small cash payment “no matter what” in exchange for simply agreeing to use the company’s services in the future. What is not made clear to consumers is that they are then locked into a 40-year agreement that will cost them or their heirs at least 3 percent of the value of the home if it is sold, transferred to another person, or goes into foreclosure before the 40 years are up. This cost applies whether or not the homeowner uses MV Realty as its agent when selling the house.

The complaint further alleges that, between June 13, 2020, and Nov. 18, 2022, MV Realty enrolled more than 3,300 Georgians – of whom over 1,000 were 60 years or older – into a contract known as a “Homeowner Benefit Agreement.” To secure performance and payment under this agreement, MV Realty recorded a “Memorandum of Homeowner Benefit Agreement” in the real property records. The memorandum acts as cloud or lien on the homeowner’s property that is worth at least ten times the amount of the no-strings-attached payment consumers receive up-front. MV Realty often interferes with a consumer’s ability to refinance their home and refuses to remove the cloud from the title when a consumer wants to obtain a reverse mortgage, unless the consumer pays the greater of 3 percent of either the current home value or the value of the home at the time the memorandum was executed.

Our office is seeking civil penalties, restitution for consumers, a court order to stop these practices, and other equitable relief.

Our office alleged that SHFS violated the Fair Business Practices Act by falsely representing to consumers that the company and/or its student loan forgiveness program is associated with the U.S. Department of Education or the consumer’s current student loan servicer; representing to consumers that their payments are being applied to their student loan balances, when that is not the case; representing to consumers that completion of payments to the company will result in forgiveness of student loans or lowered monthly payments towards loans when they do not; and representing to consumers who seek to cancel services with the company that the consumers will no longer have access to benefits of a student loan forgiveness program, when, in fact, free loan repayment programs are accessible directly through the U.S. government. Our office further alleged that SHFS offered illegal credit repair services and that it violated the Debt Adjustment Act by collecting fees in excess of what is permitted under law and failing to provide the documents and information required by law. The company entered into an Assurance of Voluntary Compliance (“AVC”) with our office, in which it has agreed to comply with the Fair Business Practices Act, pay a $10,000 civil penalty, and cease offering credit repair or debt adjustment services in Georgia. Should the company violate any terms of the AVC between the date it was executed and January 31, 2025, it will have to pay an additional $300,000 penalty.

Our office alleged that Fitness Ventures operated health spas in Columbus, Savannah and Warner Robins without obtaining the required approval from the Attorney General. The company entered into an Assurance of Voluntary Compliance that required it to comply with the Fair Business Practices Act; cancel the contracts and provide refunds totaling $4,400 to the consumers who complained to our office; and pay $6,000 in penalties.

Attorney General Chris Carr, along with 42 other attorneys general, reached a $700 million nationwide settlement to resolve allegations related to the marketing of Johnson & Johnson’s baby powder and body powder products that contained talc. The consent judgment filed in this lawsuit addresses allegations that Johnson & Johnson deceptively promoted and misled consumers in advertisements related to the safety and purity of some of its talc powder products. As part of the lawsuit, Johnson & Johnson has agreed to stop the manufacture and sale of its baby powder and body powder products that contain talc in the United States. 

Johnson & Johnson sold such products for over a hundred years. After the coalition of states began investigating, the company stopped distributing and selling these products in the United States and more recently ended global sales. While this lawsuit targeted the deceptive marketing of these products, numerous other lawsuits filed by private plaintiffs in class actions raised allegations that talc causes serious health issues including mesothelioma and ovarian cancer. 

Under the consent judgment, Johnson & Johnson:

• Has ceased and not resumed the manufacturing, marketing, promotion, sale, and distribution of all baby and body powder products and cosmetic powder products that contain talcum powder, including, but not limited to, Johnson’s Baby Powder and Johnson & Johnson’s Shower to Shower (“Covered Products”) in the United States.
• Shall permanently stop the manufacture of any Covered Products in the United States either directly, or indirectly through any third party.
• Shall permanently stop the marketing and promotion of any Covered Products in the United States either directly, or indirectly through any third party.
• Shall permanently stop the sale or distribution any Covered Products in the United States either directly, or indirectly through any third party.

As part of the settlement, Georgia will receive over $24 million. 

Per a court order issued on December 26, 2024, the co-founders of Superior Healthcare, LLC and a related company were ordered to pay $1,845,000 in civil penalties and $3,310,146 in refunds to 479 Georgia consumers as the result of a complaint filed by the Attorney General’s Consumer Protection Division and the Federal Trade Commission (FTC) in 2021. Superior Healthcare, LLC, Regenerative Medicine Institute of America, LLC d/b/a Stem Cell Institute of America, LLC, and Physicians Business Solutions, LLC, along with co-founders Steven Peyroux and Brent Detelich (collectively, “the Defendants”), operating as a common enterprise, aggressively marketed, offered, and sold expensive, unproven stem cell products to consumers, the vast majority of whom were older or disabled adults. The Defendants are also permanently banned from marketing stem cell therapy. Through various channels, including seminars, social media platforms, an infomercial, websites, YouTube channels, email blasts, and print media, the Defendants falsely advertised to the public and healthcare practitioners that its stem cell products:

• Cure, treat, or mitigate a variety of orthopedic diseases and health conditions; and
• Are comparable or superior to conventional treatments for these diseases and health conditions.

However, these claims are not substantiated by competent and reliable scientific evidence. 

Superior Healthcare, LLC generated millions of dollars in revenues by advertising and selling the products directly to Georgia consumers and by contracting with third-party clinics throughout Georgia to administer injections in exchange for a fee. The stem cell products cost approximately $5,000 per joint injection, with patients often receiving more than one. Superior Healthcare, LLC marketed and sold the products to many elderly and disabled consumers. 

Superior Healthcare, LLC stopped selling stem cell therapies in 2019 and filed for bankruptcy after the State commenced its investigation.  

Summary Judgment

Following extensive litigation, in March 2024, the U.S. District Court for the Northern District of Georgia issued a summary judgment opinion and order in favor of the State of Georgia and the FTC on all counts. In granting summary judgment, the Court found that the Defendants “engaged in a common enterprise through which they made false and misleading representations about the efficacy of stem cell therapy treatment” and that “these representations constitute ‘unlawful acts and practices’ prohibited under the [Georgia Fair Business Practices Act]”.  

Orders for Injunctive and Monetary Relief

The Court issued orders for injunctive and monetary relief. The first order permanently bans the Defendants from advertising, marketing, promoting, offering for sale, or selling any regenerative medicine treatments, including any treatment or therapy that falls under the definition of stem cell therapy. The order also prohibits the Defendants from providing others with the means of making false and misleading statements about regenerative medical treatment.

The second order requires co-founders Steven Peyroux and Brent Detelich to pay $3,310,146 to the State of Georgia to provide refunds to 479 Georgia consumers. In addition, Peyroux, Detelich, and Physicians Business Solutions are required to pay $1,845,000 in civil penalties based on the Court’s findings that the Defendants acted in bad faith, that there was significant injury to the public, and the importance of vindicating the authority of the Georgia Attorney General’s Consumer Protection Division. The Court entered a total monetary judgment of $5,155,146. 

Champion Windows offers window, sunroom, siding, and door installation products and services. Our office alleged that the company regularly failed to deliver and install residential windows to consumers by the contracted delivery date, despite the fact that it knew or should have known that the installation dates it provided could not reasonably be expected and were therefore deliberate misrepresentations. Some of these contracts were two years old and still awaiting installation. In addition, Champion Windows allegedly refused to cancel and provide refunds when estimated installation timeframes could not be met, and misrepresented warranty coverage. The company entered into an Assurance of Voluntary Compliance (“AVC”) that requires it to comply with the Fair Business Practices Act and pay a $90,000 civil penalty. If Champion Windows violates any terms of the AVC between the date of execution and February 28, 2025, it will be required to pay an additional $160,000 penalty.

Company owner, Ira Brant Patton, used trade names SolarTech USA and SolarTek Energy to solicit Georgia consumers for solar panel system sales and installation services. Neither of these trade names have been registered with any state’s Secretary of State. Consumers alleged that Patton took advance payments for the purchase and installation of home solar panel systems but failed to provide the systems and/or complete the installations and failed to offer or provide refunds. In resolution of these allegations, Patton has entered into an Assurance of Voluntary Compliance (“AVC”) with our office, which includes injunctive terms that require completion of one outstanding installation for a Georgia consumer and otherwise prohibits Mr. Patton from offering his solar panel installation services in Georgia through June 2026. Mr. Patton is obligated to pay a civil penalty of $80,000, which may be waived on June 30, 2026, if Mr. Patton does not violate the terms of the AVC within that timeframe.

The Office of the Attorney General was part of a $10.25 million 50-jurisdiction settlement with AT&T Mobility, LLC, Cricket Wireless, LLC, T-Mobile USA, Inc., Cellco Partnership, d/b/a Verizon Wireless, and TracFone Wireless, Inc. (collectively, the “Wireless Carriers”), which resolves the state attorneys general investigations into the Wireless Carriers’ deceptive and misleading advertising practices. 

The assurance terms are a key component of the settlements which address the common misleading advertising practices of the Wireless Carriers, including misrepresentations concerning: (1) “unlimited” data advertisements, which failed to clearly and conspicuously disclose material limitations; (2) “free” phone offers, which failed to clearly and conspicuously disclose material conditions; (3) monetary incentives to “switch” wireless networks, which failed to clearly and conspicuously disclose how the monetary incentives would be provided; and (4) wireless carrier plan comparisons, which failed to disclose material differences.

The assurance terms will, among other things, require the Wireless Carriers to: 

• (1) make all future advertisements and representations truthful, accurate and non-misleading; 
• (2) refer in marketing to “unlimited” mobile data plans only where such plans do not set any numerical limits on the quantity of data allowed during a billing cycle and clearly and conspicuously disclose any restrictions on data speed, as well as the triggers of such restrictions;
• (3) offer to pay for consumers to “switch” carriers only where they clearly and conspicuously disclose the type of fees and amounts that they will pay consumers, the form and schedule that such payment will take and all material requirements that consumers must satisfy in order to qualify and receive such payment;
• (4) offer wireless devices or services for “free” or similar terms only where they disclose clearly and conspicuously all material terms and conditions that the consumer must meet in order to receive the “free” devices or services; 
• (5) make offers to lease wireless devices only where it is made clear to the consumer that the consumer will be entering into a lease agreement; 
• (6) make representations that a consumer will save money by purchasing its products or services only where it has a reasonable basis to do so based on comparisons with the prices of comparable goods or services of other providers, or where any material differences between those goods or services are clearly and conspicuously disclosed; and
• (7) appoint a dedicated employee to work with the attorneys general to address ordinary complaints filed by consumers;
• (8) train its customer service representatives who speak with consumers to comply with these terms and implement and enforce a program to ensure compliance with these terms.

The State of Georgia will receive $271,714.54 in attorneys’ fees and costs as part of the 50-jurisdiction settlements with the Wireless Carriers. 

Our office was part of a 30-state settlement with Baron App, Inc., d/b/a Cameo, resolving the states’ attorneys general investigation into Cameo’s oversight of policies and practices regarding videos made using their app. Cameo offers a platform for celebrities to create personalized video “shoutouts”—such as a birthday or congratulatory message—for a fee ranging from $50 to $2,500, depending on the celebrity. Cameo also offers a “business Cameo” service designed to promote a company or product on the company’s website and social media accounts. 

The multistate investigation found potential violations of states’ consumer protection statutes and the Federal Trade Commission’s (FTC) Endorsement Guides’ paid advertiser disclosure requirements. The states allege that Cameo failed to provide appropriate disclosures to consumers purchasing personalized video business messages. The company’s alleged failure to adhere to these guidelines enabled scammers and unscrupulous businesses to use these celebrity “shoutout” videos as endorsements of a business without indicating that the videos were paid advertisements. In addition, the states allege that Cameo failed to provide refunds to users who paid to use the business Cameo feature but mistakenly signed up for personal message Cameos, which are less expensive than business Cameos. 

As part of the settlement, Cameo has agreed to establish and maintain programs and policies to help ensure that its website and mobile applications users comply with all applicable state and federal laws including the FTC’s Endorsement Guides. Cameo will implement a watermark system to indicate that business cameos are paid advertisements; implement a system for legal disclosures to and acknowledgements from all celebrities and consumers; monitor paid advertisements for compliance and establish reporting mechanisms for non-compliant Cameo videos.  

Modern Travel Network, LLC is a buying club in Savannah that offers travel club memberships to consumers via a kiosk on River Street, a popular tourist destination in Savannah. The business offers free tour bus and trolley ride vouchers to consumers in exchange for attending sales presentations. The Attorney General’s Consumer Protection Division (“CPD”) received consumer complaints alleging that the company’s sales representatives employed high-pressure and bait-and-switch tactics to sell their travel club memberships. Consumers also claimed that once purchased, the memberships do not provide the benefits that were advertised during the presentation. CPD’s investigation revealed that the membership contracts consumers had signed were not the same as those submitted to CPD for approval pursuant to O.C.G.A. § 10-1-596. Our office alleged that the business further violated the Fair Business Practices Act by misrepresenting the benefits of its travel membership programs; making false or misleading statements concerning the reasons for, existence of, or amounts of price reductions by representing that memberships are sold at “wholesale” prices.

The business and its owner have entered into a settlement with our office, requiring it to comply with the Fair Business Practices Act, pay restitution to consumers in the amount of $7,068.00 and pay penalties of $10,000, some of which can be waived if the business does not violate any terms of the AVC.

Xtreme Scooters sells recreational equipment to consumers. Our office alleged that the company either (1) failed to provide consumers with the products they ordered and then failed to provide a refund; or (2) failed to provide the purchased products within the timeframe promised. In addition, the company allegedly represented to consumers that they are only entitled to a store credit in situations where the company failed to timely deliver the products ordered. We further alleged that Xtreme Scooters falsely represented to consumers that products advertised on its website are currently in stock and available to be delivered within short time frames that the company then failed to honor. By entering into an Assurance of Voluntary Compliance (“AVC”) with our office, the company has agreed to comply with the Fair Business Practices Act, pay a total of $20,403 in restitution to five consumers, and pay $30,000 in penalties to our office, $25,000 of which will be waived if there have been no violations of the AVC and if our office has not received any verifiable, actionable complaints against the company.