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Hearings Examiner this week ruled in favor of the Department of
Commerce and State Auditor Mark O'Keefe's Office, saying that Pinnacle
Auto Glass broker violated state laws by engaging in two counts of
unfair trade practices. Pinnacle has shops in Great Falls and Helena.
"This is a
landmark case in our eyes, because it establishes a precedent for the
law that was passed by the 1993 legislature," said Annie Bartos,
Chief Legal Counsel for the Department of Commerce. "This was the
first contested hearing under this act. We now can act on other
complaints where smaller distributors have fallen victim to unfair
trade practices."
Pinnacle Auto
Glass was offering to buy back damaged windshields for $100 as well as
offering a $50 payment to consumers for agreeing to display a Pinnacle
Auto Glass sticker for 6 months. In both promotions, however,
investigators failed to find a single instance of cash being exchanged
for the promotions. The hearings Examiner concluded the shop was
simply applying the credit from the promotions toward a customer's
insurance deductible, a practice specifically forbidden by state law.
"We feel Pinnacle's promotions
are a clear attempt to funnel all insurance related business in their
direction," said O'Keefe. "We believe in creating and
maintaining a level playing field so the smaller local shops can
compete."
Pinnacle
maintained throughout the proceedings that the majority of their sales
came through cash customers. The business, however, was unable to
produce even a single record of non-insurance transactions.
Kimberly Kradolfer,
the Hearing Examiner, proposed an order for Pinnacle Auto Glass to
cease and desist all advertising of any program that provides value to
a customer for used or broken glass. The Proposed Order also mandates
that Pinnacle stop providing rewards to customers for displaying a
Pinnacle Auto Glass sticker unless the payment is handled as a
separate transaction and until the advertising was completed.
The Hearings
Examiner also found Pinnacle Auto Glass failed to keep adequate
business records. Montana statute requires businesses to keep their
records up to date for a period of at least 90 days.
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