AG suing company that swindled local residents

By Christopher Caskey / The Citizen

Wednesday, July 15, 2009 11:43 PM EDT

The state attorney general's office is suing a Florida-based company it says scammed local residents and other New Yorkers through fraudulent promotions.
In a written statement released this week, Attorney General Andrew Cuomo accuses Tidewater Marketing Global Consultants of carrying out deceptive promotional campaigns promising free gasoline.

The promotions allegedly took place at various state businesses, according to the attorney general's office, including Skaneateles car dealership Bombard Car Co. In January, Bombard agreed to pay customers as part of a settlement over sales practices that involved third-party promotions.

According to Cuomo's office, Tidewater Marketing has used multiple aliases to market free gas cards to customers in the state since February 2008. After allegedly making those customers undergo a “burdensome” and “convoluted” redemption process, Cuomo's office says, the company failed to actually give cards to people who earned them.

“This company chose to disregard important consumer protections that exist in New York and instead engage in a deliberately deceptive scheme,” Cuomo said in a written statement.

A lawsuit filed June 24 with Onondaga County Court seeks to ban Tidewater Marketing from doing businesses in the state, and also is looking for restitution and civil penalties.

According to court documents, Tidewater marketed the gas card redemption and other programs through merchants who would use the incentives to generate business. In most cases, the lawsuit states, the retailer gave certificates for “free gasoline” to customers who purchased or tested a product.

The customers were instructed to log onto a Web site and pay $5 to begin the process, according to the lawsuit. Customers were then only entitled to a $25 gas card every month, so long as they provide receipts showing they have purchased $100 in gas during that time period, according to court papers.

The Florida attorney general's office has also filed suit against the company, claiming it failed to give 332,000 gas cards to 130,000 customers around the nation who followed the program. In many instances, court documents allege, those customers who tried to contact Tidewater never heard back or were given excuses by representatives.

Some of those people were customers of Bombard Car Co., which was told to pay more than $15,000 to customers as part of a settlement after Cuomo's office accused the company of using unethical and deceptive sales practices.

At the time, Bombard representatives criticized the attorney general's office for not telling the whole truth. The company said those sales in question took place as part of promotions run by out-of-state third parties.

The lawsuit also cites a customer who got caught up in the alleged gas card scam after purchasing a vehicle through H & L Ford Lincoln Mercury on Grant Avenue in Auburn.

Tim Limpert, an attorney who represents Bombard Car Co., said Wednesday that neither he nor the company knew Cuomo's office had filed suit against one of those third party vendors.

“I think the vendors take advantage sometimes of the dealers ... as well as the customers,” Limpert said.

Court documents say Tidewater Marketing is liable for civil fines as high as $5,000 for each complaint. The Florida lawsuit claims the company's liability nationwide exceeds $10 million.

The attorney general's office asks customers who believe they are victims of deceptive advertising to call the regional office at 448-4848 or visit www.oag.state.ny.us.

Staff writer Chris Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net

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