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Pennsylvanians Get Refunds for Undisclosed Fuel Surcharges by Trugreen Chemlawn

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Case ID: 2886 | Consumer Products | 11/10/2003

The parties have reached a settlement in an enforcement action filed against national lawncare business Trugreen Chemlawn on behalf of more than 121,000 Pennsylvanians who paid a previously-undisclosed fuel surcharge when they hired the company to perform various lawn care services between July 13 and December 31, 2000. The action alleged that the company violated Pennsylvania's Unfair Trade Practices and Consumer Protection Law. Eligible participants should contact the Pennsylvania Attorney General's office for details.

According to the investigation, TruGreen contacted Pennsylvania consumers by telephone offering a "Free 14-Point Lawn Analysis." Those who agreed to the offer were visited by company representatives, who provided estimates for various lawn or shrub care services.

In mid-July 2000, TruGreen allegedly began adding a $1 fuel surcharge to customers' invoices for the services performed. The fee was charged each time the company visited consumers' homes for lawn treatments between July 13, 2000, and December 31, 2000. Numerous consumers complained to the Pennsylvania Bureau of Consumer Protection Office that the fuel surcharge was not disclosed at the time they agreed to do business with TruGreen.

Once aware of the Attorney General's investigation, TruGreen in late October 2000 changed its invoices to include the word "Voluntary" beside the fuel surcharge. Many consumers allegedly failed to notice the disclaimer, which was not disclosed prior to the performance of the services. TruGreen admitted that it collected nearly $168,000 in fuel surcharges during the last six months of 2000.

Under the terms of the agreement, TruGreen has agreed to: (1) reimburse consumers who paid the fuel surcharge or credit existing consumers' accounts for the amount of the surcharge, (2) cease collecting any fees that are not clearly and conspicuously disclosed prior to performing the services requested, (3) submit a report to the Commonwealth of Pennsylvania for all payments made to consumers, and (4) pay $40,000 for the Commonwealth's investigation costs.

The company will notify consumers by mail that they are entitled to a refund. The notification postcards are expected to be sent during fall 2003. The postcard will include a toll-free number that consumers are asked to call to obtain their refunds.


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