HARRISBURG — Attorney General Dave Sunday announced that Curtis Total Service, Inc., and two of its employees – current manager Richard Price and former HVAC field supervisor Matthew Price – have agreed to pay the Commonwealth $300,000 and significantly revise their business practices to comply with the Pennsylvania Consumer Protection Law and Home Improvement Consumer Protection Act.
The settlement resolves a lawsuit filed by the Office of Attorney General in June 2022 alleging the company engaged in deceptive and high-pressure sales tactics that targeted vulnerable consumers in pushes for unnecessary HVAC work and equipment replacements.
“Curtis Total Service used fear and deception to pressure consumers into expensive and often unnecessary HVAC purchases,” Attorney General Sunday said. “Many victims in this case were seniors or individuals living on fixed incomes who were misled about their rights, and intimidated when they attempted to cancel these contracts. This settlement holds the defendants accountable and puts in place strong protections to prevent these abusive practices from happening again.”
As alleged in the complaint, the defendants allegedly used high-pressure sales tactics to convince consumers their systems needed immediate replacement, had customers sign incomplete or blank contracts, and later filled in or altered terms after signatures were obtained.
The lawsuit also alleged the defendants misrepresented financing terms, and misrepresented the statutory right to rescission to prevent consumers from exercising their right to cancel their contract within three business days.
The defendants also allegedly threatened legal action or other consequences against consumers who attempted to cancel contracts and otherwise took adverse action against consumers who filed complaints about Curtis Total Service, according to the Commonwealth’s lawsuit.
The defendants agreed to settle the lawsuit after approximately one week of trial testimony presented by the Office of Attorney General, including testimony from multiple consumer victims.
– One victim, 85-year old Shirley Beckman who receives social security, testified that she called Curtis Total Service for a furnace repair at her mobile home. When Matthew Price arrived at her home on a Friday, he scared her into thinking her heater could catch on fire and “blow up at any second,” causing her to sign a blank contract on the spot for what she thought would be the cheapest unit possible. Matthew Price allegedly told Beckman she could not cancel her contract and did not give her a copy of her paperwork. Beckman testified that she later consulted with family members and called Curtis Total Service over the weekend in an attempt to exercise her right to cancel but Curtis Total Service allegedly threatened her with legal action if she did not proceed with the installation. When Beckman finally obtained the paperwork in the mail, post installation, the total cost was more than three times the amount originally discussed, and her income information had allegedly been falsified on financing documents.
– Another victim, 90-year-old Saul Topolsky, testified that he called Curtis Total Service to inquire about a cleaning special advertisement for his HVAC unit. At trial, he testified that Curtis Total Service removed his HVAC unit without his consent, claiming it contained mold. During that same visit, Topolsky says he was forced to sign a contract for a new HVAC unit, totaling approximately $29,000.
Under the settlement, the defendants are prohibited from engaging in the conduct alleged in the lawsuit, including:
- Knowingly recommending unnecessary goods and/or services.
- Utilizing advertising materials that make materially false or misleading statements.
- Recommending replacement of a system or appliance without first making reasonable repair efforts.
- Providing goods and/or services to consumers before providing the consumer with upfront prices and obtaining a consumer’s written consent.
- Identifying a substance in a consumer’s home as mold without confirming via laboratory testing.
- Having a consumer sign any document that is not completely filled out at the time of signature.
- Failing to provide consumers with copies of any and all contracts at the time they are signed.
- Rejecting a timely effort to cancel a contract within three business days absent a valid Emergency Work Authorization Form or otherwise misrepresent a consumer’s right to cancel their contract.
Additionally, under the settlement, if the defendants enter into any type of agreement with a consumer or employee that contains a non-disclosure or non-disparagement provision, the provision must contain an express carve out permitting the consumer to disclose information and provide documentation to law enforcement.
Matthew Price is also banned for eight years from serving in any type of management or sales position for any HVAC related company operating in Pennsylvania and is permanently prohibited from handling financing applications or credit limit increases for non-familial Pennsylvania consumers.
Richard Price is required to provide written notice to his direct supervisor regarding certain business decisions involving consumer purchases and cancellations and ensure those are maintained in consumer files. He is permanently barred from holding any type of ownership interest in an HVAC-related company in Pennsylvania for five years.
This case was litigated by Deputy Attorneys General Melissa L. Kaplan and Debra D. Warring.
A settlement agreement shall not be considered as an admission of violation of the law.
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