FTC Refunds Small Businesses for Office Supply Scam

The Federal Trade Commission is sending checks to small businesses who were taken in by an office supply scheme conducted by A-1 Janitorial.

The checks total more than $2.6 million, according to the FTC. Reportedly, 30,374 businesses are receiving checks worth an average of $86. 

The FTC informs recipients that they should cash the checks within 60 days of receiving them, as the checks expire in 60 days. This limitation is reportedly noted on each check.

The refund checks are being sent to affected small businesses because the Federal Trade Commission launched a lawsuit against A-1 Janitorial, claiming that the company advertised that it would send free samples of cleaning products and other office supplies to small businesses but really charged them for the full cost of the products.

In response to the FTC’s allegations against A-1 Janitorial, a U.S. district court judge forced A-1 Janitorial to permanently stop its alleged scam. Per the court’s orders, the company is now barred from continuing to conduct the scam and is required to pay $2.7 million to customers affected by it. Additionally, A-1 is prohibited from collecting payments from customers for products sold before Nov. 2, 2017.

The FTC launched its complaint against the company in October 2017. The FTC said that A-1 Janitorial called many small businesses around the country and offered to send them a free sample of cleaning or office products.

However, the FTC said these samples were not really free, as the company claimed, because A-1 Janitorial proceeded to bill customers for the full cost of the product. Reportedly, A-1 Janitorial would bill customers for the products even if the customer refused to accept the product.

The FTC explains that many recipients of the office supplies paid for the products even if they did not order them, because they thought that an employee had ordered them. Reportedly, recipients were often led to believe an employee within the organization had ordered the product because the invoices sent by A-1 Janitorial usually listed a specific employee in the customer’s organization.

Unfortunately, the scam did not stop there, says the FTC. A-1 Janitorial reportedly sent multiple shipments and new invoices to affected businesses. If customers complained to A-1 Janitorial about extra invoices for products they did not order, they were reportedly told that the extra products shipped to them in additional shipments were part of the order placed initially.

Some customers continued to receive product shipments even when they paid the company just to make sure the shipments stopped. Additionally, A-1 Janitorial reportedly made a practice of refusing to refund purchases. A-1 allegedly claimed that their products could not be returned because they are chemicals.

Unfortunately, this is not the only scam that may have been active recently. In September, the FTC sent out refund checks to victims of an office supply scam concocted by companies operating under the names Midway Industries and Standard Industries. 

Individuals and businesses who have questions about the A-1 Janitorial office supply scam refund can direct their questions to the refund administrator JND Legal Administration. They can be reached by phone at 1-844-908-0194.

Those who wish to learn more about the FTC’s refund program in general can do so on the FTC website.

Were you scammed by the A-1 Janitorial office supply scheme? Let us know in the comment section below!

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