(Phoenix, Ariz. - May 4, 2010) Attorney General Terry Goddard today announced that he has filed a lawsuit against Allstar Moving & Storage, Inc., of Chandler, for multiple violations of the Arizona Consumer Fraud Act, including deceptive advertising practices.
The complaint also names the company’s president, Mohamed Elsayed, and its general manager, Amru Abdalla, as defendants.
For the past two years, the company advertised its services in monthly direct mail packets such as Savvy Shopper, Clipper, and ValPak that were distributed to Arizona consumers. The direct mail advertisements stated that Allstar provided “High Quality Service Without The High Prices” and prominently featured two hourly rates for its moving services.
Contrary to Allstar’s advertising, the company allegedly added charges to consumers’ invoices, including fees for fuel, truck cleaning, a “sales tax” on the base moving charge, and a surcharge referred to as a “SPE tax” charge. Allstar also advertised that it hired experienced movers when, in fact, many of Allstar’s movers are alleged to have had no professional moving experience before working for the company. The company also falsely stated in its ads that it was bonded and insured.
The complaint alleges the company, which also operated under the name Always Moving & Storage, violated the Arizona Consumer Fraud Act by:
- Falsely representing what it would charge consumers by adding undisclosed fees to consumers’ invoices such as fuel, truck cleaning and fictitious taxes.
- Falsely advertising that the company was bonded.
- Failing to disclose that its insurance only covered a fraction of the value of any property damaged or destroyed by Allstar
The lawsuit, filed in Maricopa County Superior Court, asks the defendants to pay a fine of up to $10,000 for each violation of the Consumer Fraud Act. Assistant Attorney General Cherie L. Howe is prosecuting this case.
“Arizonan consumers must be treated fairly and not charged a lot of hidden fees,” Goddard said. “When businesses play by the rules, the market is more competitive, and consumers win.”
If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602-542-5763, in Tucson at 520-628-6504, or outside the Phoenix and Tucson metro areas at 1-800-352-8431. Consumers can also file complaints online by visiting the Attorney General’s website at www.azag.gov . To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help.
A copy of the lawsuit is attached. For more information, contact Molly Edwards at 602-542-8019.