26,000 Arizonans are eligible for restitution
PHOENIX - Attorney General Mark Brnovich announced today that up to 26,000 Arizonans who purchased home warranty services from Landmark Home Warranty will receive compensation as a result of an agreement with the Arizona Attorney General’s Office (AGO). The consent agreement resolves the AGO's claims asserted against Landmark concerning misrepresentations made about its “expedited services” policy from 2017 to 2019. Arizona consumers will receive a total of $1 million in restitution.
“When home warranty companies make promises to consumers, they better deliver, especially when it comes to air conditioning repairs during the Arizona summer,” said Attorney General Brnovich. “Our office will continue to pursue companies who engage in these types of practices.”
In the company’s contracts, Landmark promised that it would “make reasonable efforts to expedite service within 24 hours” when a consumer suffered a complete loss of air conditioning in “extreme temperatures.” Unfortunately, as the AGO alleged, from 2017 to 2019, Landmark defined “extreme temperatures” in a manner that was impossible for consumers to satisfy.
Landmark allegedly instructed its employees that unlike other states where Landmark operated, “extreme temperatures” for Arizona only existed if the low temperature was 100 degrees or more, or if the temperature has been over 100 degrees for 24 hours straight. Neither condition has ever existed in Arizona’s recorded history. According to Landmark’s own records, in summer 2018 and 2019, about half of Landmark’s Arizona customers requesting air conditioning service had to wait over a week for a Landmark-selected technician to even examine the air conditioner.
Under the settlement with the AGO, Landmark must pay $1 million in restitution to up to 26,000 Arizonans. Each consumer who did not receive timely air conditioning services and incurred expenses may be eligible for up to $1,000 in reimbursement. All Arizona Landmark customers from 2017 to 2019 will receive at least $25. The AGO is in the process of selecting a claims administrator who will proactively send letters to eligible consumers. The AGO will release contact information for the claims administrator in the near future.
The consent agreement, pending court approval, further requires that Landmark pay an additional $750,000 in civil penalties and prevents Landmark from advertising expedited services in Arizona for the next five years.
This case marks the second formal action taken against a home warranty company by Attorney General Brnovich in the last two years. In November of 2019, the AGO filed a consumer fraud lawsuit against Choice Home Warranty, alleging various deceptive and unfair practices. That litigation is ongoing.
Unit Chief Counsel Matthew du Mee and Assistant Attorneys General Mark Ciafullo and Syreeta Tyrell of the Consumer Protection and Advocacy Section handled the investigation.
If you believe you have been the victim of consumer fraud, please contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the metro areas at (800) 352-8431. Bilingual consumer protection staff is available to assist. Consumers can also file complaints online here.
Copy of complaint here.
Copy of consent agreement here.
Photos from complaint: