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 Auto Glass Legal News 

August 14, 1998

 

Montana Department of Commerce Wins Case
Against Auto Glass Brokers

State Claimed Pinnacle Auto Glass violated state laws by engaging in unfair trade practices.


    A 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. 

Info Contact> Paul Bergen (406) 444-2495

 

source: Montana's State Auditor Office