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> Local News > West Springfield > P.J. Care settles suit with Commonwealth over allegations of false advertising
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P.J. Care settles suit with Commonwealth over allegations of false advertising |
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July 14, 2010
By Katelyn Gendron
Reminder Assistant Editor
WEST SPRINGFIELD -- A local franchise of Homewatch Inter-national and Homewatch CareGivers on Union Street, a home-based care company, has chosen to settle with the Commonwealth for $102,979.63 amidst allegations of deceptive advertising targeting military veterans.
Attorney General Martha Coakley announced the case settlement last week, which alleged that the West Springfield franchise, P.J. Care, allowed customers to spend thousands of dollars on the Veterans Salute Program to gain the Aid and Attendance benefit from the U.S. Department of Veterans' Affairs. However, the department has no affiliation with P.J. Care and in turn violated the Massachusetts Consumer Protection Act, according to the attorney general.
"We owe a great debt to our veterans and their families," Coakley said. "Using deceptive or heavy-handed sales tactics to sell home health or other benefits to these individuals will not be tolerated by my office."
Jennifer Tucker, vice president of marketing for Homewatch International in Colorado, said, "We would like to clarify the picture painted by the Massachusetts attorney general. None of the programs or advertising materials in question were owned or produced by Homewatch CareGivers. These programs and materials were developed and provided by a third-party vendor.
"When we discovered issues with the vendor's programs, Homewatch International ceased its association with this vendor. This was in 2006. We clearly articulated this to our franchisees, independent business owners operating by agreement under the Homewatch CareGivers' brand, and provided them clear guidance on discontinuing these programs," she continued.
Peter and Judy Yaffe, franchisees of P.J. Care, issued a statement concurring with Homewatch International, adding that their location joined with 14 other national franchisees in 2007 and "successfully suing Horizon Care Coordinators [the third party vendor] for the misleading and false information they provided and that we, and their national franchisees, unwittingly shared with area veterans."
Coakley noted that in addition to the financial settlement, "P.J. Care is also permanently prohibited from engaging in unfair or deceptive acts or practices in marketing or advertising home-health care services to veterans or their spouses."
The settlement was deemed a necessary act in order to continue business, according to the consent judgement.
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