Company ordered to halt scam targeting small businesses

FRANKFORT, Ky. (WTVQ) – Attorney General Andy Beshear is warning Kentucky small-business owners to avoid a mail scam pressuring them to purchase a bogus labor law poster for their employees and business.

The mailers, and the belief that the labor law posters provided by the company are required by federal law, are false, misleading and deceptive, and constitute a violation of the Kentucky Consumer Protection Act, Beshear said.

“Over the last three months in office, the number of scams bombarding Kentuckians is on the rise, and now con artists are targeting our small business community,” Beshear said. “As part of this scam, con artists are demanding business owners to pay $84 for a sham poster or face up to $17,000 in fines.”

The mailing is marked with the company name, Corporate Compliance Services and labeled “Labor Law Compliance Request Form.” The letter falsely states that federal law requires the poster and that noncompliance with the posting regulations can lead to potential fines and legal action. Not all businesses are required to post such information, and even when posting is required, the information is provided at no charge by the U.S. Department of Labor at http://webapps.dol.gov/elaws/posters.htm.

The Office of Consumer Protection has tracked the mailing to Starwood Consulting, LLC, which is doing business as Corporate Compliance Services, in Woodlands, Texas, and has issued a cease and decease letter to the company. Under the Kentucky Consumer Protection Act, the company could face a penalty of $2000 per violation and continued violations may result other legal remedies by the Office of the Attorney General.

Small-business owners in receipt of the labor law poster, or other fraudulent solicitations should file a consumer complaint with the Attorney General’s Office of Consumer Protection, or call the consumer protection hotline at 888-432-9257.

The U.S. Department of Labor website offers additional information to small businesses seeking to navigate the actual poster and notice requirements enforced by the agency.