Loclly to cease misleading practices, pay $94K in fees - CBS46 News

Loclly to cease misleading practices, pay $94K in fees and restitution

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John Sours, Administrator of the Governor's Office of Consumer Protection announced Monday that the agency has entered into a settlement with daily deal company, Loclly and Michael Ferguson, the company's principal officer.

Loclly offers consumers discounted vouchers on various merchandise and services. Consumers pay Loclly via its website and then print out a voucher, which the consumer then presents to the actual vendor.

In the settlement, GOCP alleges that the company committed various violations of the Fair Business Practices Act.

According to the GOCP, even after Loclly had become aware that certain vendors were not honoring vouchers for their products or services, Loclly continued to advertise and sell vouchers for those products and services. When consumers discovered they were unable to redeem their vouchers, they contacted Loclly, but the company refused to issue refunds and would only offer store credit. This was also a violation of Loclly's promise of "100 percent satisfaction guaranteed."

Under the settlement, Loclly and its owner are required to pay a $40,000 civil penalty and $35,000 in administrative expenses. They must also pay $4,105.60 in direct restitution to 42 consumers and another $15,000 to the State as a restitution trust fund for issuing refunds to eligible consumers.

Consumers who believe they may be entitled to compensation under the settlement can fill out a claim form and submit it to GOCP, along with supporting documentation. Claim forms must be postmarked, faxed or hand-delivered no later than 5:00 p.m. EST on October 9, 2013 in order to be considered for restitution.

In order to be eligible for restitution, the claim must meet the following requirements:

  • The claim must involve a consumer transaction with Loclly;
  • The claim must be related to Loclly's improper denial of a refund, including but not limited to those complaints alleging that the company failed to comply with its stated refund policy, and/or alleging that the purchased voucher was not honored.
  • The consumer must not have previously received a full refund from Loclly for the disputed transaction. If the consumer received store credit from Loclly but has not used it to make another purchase, the consumer may still be eligible for restitution.

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