HVAC company to pay $300,000 to settle lawsuit over deceptive sales claims

A Pennsylvania HVAC contractor and two of its employees must pay the state $300,000 to settle claims that it pressured and misled customers, the state’s Attorney General announced Thursday. 

What’s happening: Attorney General Dave Sunday sued Allentown-based Curtis Total Service in June 2022, alleging the company engaged in deceptive and high-pressure sales tactics in violation of several Pennsylvania consumer protection laws. 

• The parties settled roughly one week into a trial. 

Zoom in: Curtis Total Service’s employees convinced consumers their systems needed immediate replacement, and had customers sign incomplete or blank contracts, only to change the terms after signing, the Attorney General’s office alleged in its complaint. 

• The suit also alleged that they misrepresented financing terms, misled consumers about their right to cancel contracts, and threatened legal action against consumers who did attempt to cancel. 

Go deeper: An 85-year-old victim said in testimony that a technician scared her into thinking her furnace could “blow up at any second,” prompting her to sign a blank contract, though she wasn’t given a copy and was told she couldn’t cancel.

• When the paperwork arrived, post-installation, the total cost was more than three times what was originally discussed, she added. 
• A 90-year-old victim, who also testified, said an employee removed his HVAC unit without his consent, claiming it had mold, and that he was ultimately “forced” to sign a contract for a new $29,000 HVAC unit.

Looking ahead: The settlement prohibits the company from certain actions, including providing services without providing upfront pricing and obtaining written consent, and having customers sign documents that aren’t completely filled out at the time of signature. 

• Manager Richard Price is permanently barred from holding any ownership interest in an HVAC-related company in Pennsylvania for five years and is required to provide written notice to his direct supervisor regarding certain consumer purchases. 
• Meanwhile, former field supervisor Matthew Price is banned for eight years from serving in a management or sales position at any HVAC-related company in Pennsylvania and is prohibited from handling financing applications. 

What they’re saying: An attorney for the Prices provided Homepros with a statement saying, “Curtis [Total Service] stands vindicated.” 

• Despite the state having sought $5 million, “after 6 days of trial, with each witness worse than the next, the case was resolved for a nominal amount and with no admission of liability by Curtis, because Curtis did nothing wrong,” the statement says.  
• “In fact, nearly every witness agreed that they received high-quality, HVAC equipment and service from Curtis in replacement of old, outdated equipment that wasn’t working and for which those customers were required to pay nothing down and no interest for years,” it adds.