(Phoenix, Ariz. - Dec. 20, 2010) Attorney General Terry Goddard announced today he has obtained an $80,000 consent judgment in Maricopa County Superior Court against Allstar Moving & Storage, Inc., of Chandler; its owner, Mohamed Elsayed, and its general manager, Amru Abdalla. Allstar operates a moving service under its corporate name, as well as under the name Allways Moving & Storage.
The Attorney General filed a lawsuit against Allstar in April, 2010, alleging that the company, while touting its “high quality service without the high prices” and flat, hourly rates in its advertising, routinely added significant charges to consumers’ invoices that rendered the advertised flat hourly rate false, including charges for gas, truck cleaning, and fictitious sales and special taxes. The additional, undisclosed charges typically added hundreds of dollars to consumers’ invoices.
The lawsuit also alleged that Allstar:
- Misleadingly advertised that it used experienced moving crews when, in fact, many of its movers had no moving experience at all.
- Falsely advertised that it was bonded.
- Failed to disclose that its "insured" status would only reimburse consumers up to 60 cents per pound of damaged or destroyed property, and that if a consumer wanted full reimbursement, he or she would have to purchase additional coverage from Allstar.
The consent judgment requires the defendants to pay $33,000 as restitution to eligible consumers, $37,000 as civil penalties, and $10,000 for investigative costs and attorneys’ fees.
The judgment also requires Allstar to comply with the Arizona Consumer Fraud Act and specifically prohibits the company from:
- Advertising any specific price for services without clearly and conspicuously disclosing any additional charges that will be added to the advertised price.
- Representing to consumers that it uses “experienced” movers unless they are in fact experienced.
- Representing that it is bonded unless true.
- Representing that it is insured unless, as included in its hourly rate charged to consumers, consumers will be provided full reimbursement for damage incurred as a result of Allstar’s actions.
- Charging consumers a sales or other tax on any of its products or services unless it remits such tax to a lawful taxing authority.
The case was handled by Assistant Attorney General Cherie Howe.
For more information, contact Janey Pearl at (602) 542-8019.