An Oklahoma-based tanning chain has agreed to pay $350,000 in customer restitution in an agreement with the Colorado Attorney General, John Suthers.
At the Beach agreed to the fine and to halt deceptive sales practices. The settlement also means the tanning chain will have to record all its future sales.
“We believe the company’s agreement to record all sales transactions will deter future misconduct, and is evidence of the company’s desire to change its sales practices, ” Suthers said.
At The Beach allowed its employees to tell consumers they could “cancel their contract at any time,” according to the state’s complaint.
Former employees and consumers told investigators that the company failed to disclose that cancellation would require payment of half of the remaining cost of the contract. Consumers also said they first learned of the cancellation fee when they attempted to cancel.
Consumers will be eligible for restitution if they have already filed a written complaint with the Colorado Attorney General’s office or the Better Business Bureau. The Office of the Attorney General estimates that more than $100,000 will be refunded to more than 300 past At the Beach customers.
The company also will be required to pay an additional $75,000 to the state to be used to reimburse consumers who file complaints going forward.