Tag Archive for: Consumer Protection Unit

DA Announces $13.6 Million in Consumer Protection Judgments Against Three Companies

San Diego County District Attorney Summer Stephan today announced key updates to the way her office is protecting consumers from fraud and abuse, including a modernized online reporting tool on its public website and increased access for the public to make complaints in person. The expanded consumer protections come amid news of stipulated judgements involving the San Diego District Attorney’s Office to settle civil law enforcement complaints against three companies: HelloFresh, Walmart Corporation, and Attractive Gems.

Over the past 10 years, the San Diego DA’s consumer protection filings have led to 87 civil judgments, resulting in court-ordered statewide penalties totaling more than $134 million.

“The civil actions we file protect the consumer and hold corporations accountable when they fail to follow the laws in place to ensure the public is getting accurate and fair pricing information on products they purchase, as well as making sure companies aren’t using fine print to trigger costly automatic renewals that take advantage of unsuspecting consumers,” said DA Stephan. “Our Economic Crimes and Consumer Protection Division is committed to holding retailers accountable for meeting their obligations under the law and we work with our colleagues across the state of California to accomplish that.”

In what is believed to be one of the largest such judgments ever ordered in California, it was announced today that HelloFresh, the world’s largest meal kit delivery company, will pay $7.5 million to settle a civil lawsuit alleging the company violated California’s Automatic Renewal Law by deceptively enrolling consumers into auto-renewing subscription plans without proper disclosure or consent. The lawsuit alleged that HelloFresh misled California consumers into ongoing subscription charges without adequate notice or authorization.

In a separate action, Walmart Corporation was ordered last week to pay a $5.6 million stipulated judgement to settle a civil law enforcement complaint that alleged that the retailer unlawfully charged customers prices higher than their lowest advertised or posted price.

And in a settlement announced last month, a $500,000 judgement was ordered against the San Diego-based jewelry store Attractive Gems Jewelers and its two owners, resolving allegations that the company engaged in deceptive lending practices. A joint investigation by the San Diego County District Attorney’s Office and California Department of Justice found that Attractive Gems misled consumers by falsely promoting a store credit line to build credit. The company also failed to provide required credit disclosures and used unlawful arbitration clauses in installment contracts with military service members in violation of the federal Military Lending Act.

The DA today also announced an updated online reporting tool on its public website, which allows the public to file a complaint if they are aware of a fraudulent or unlawful business practice taking place in the county. Consumer protection-related criminal or civil cases are developed in several ways, including information from law enforcement and regulatory agency investigations, referrals from consumer protection prosecutors in other areas of California, and complaints from the citizens of San Diego through the DA’s Consumer Complaint Form process.

“My office is committed to supporting the San Diego community and providing a means of reporting individuals and businesses engaged in unlawful business practices,” DA Stephan said. “We want to streamline the reporting process as much as possible and want consumers to know where they can go to more easily report suspected fraud or unlawful business practices.”

The DA is making consumer protection experts available at two locations in the county, allowing the public a more accessible way to report suspected consumer fraud, make consumer complaints, and receive consumer protection advice in person. These specialists will be on-site every week, part-time at the DA’s CARE Center located at 12 North Euclid Avenue in National City, as well as One Safe Place:  the North County Family Justice Center located at 1050 Los Vallecitos Boulevard in San Marcos.

The San Diego County District Attorney’s Economic Crimes and Consumer Protection Division, brings civil and criminal actions to protect San Diego County consumers. The division investigates and prosecutes fraud and unlawful business practices in the marketplace. The division includes a team of experienced attorneys, investigators, and other professional staff who investigate and evaluate reports of fraudulent and unfair business practices and determine appropriate action.

Last year alone, the DA’s Consumer Protection Unit filed several civil actions related to unfair or deceptive business practices that netted a total of $14,652,500 in civil judgments. The cases involved illegal automatic renewals, improper pricing policies and pricing inaccuracies. Companies that reached settlements with the DA’s Office include Thrive Market Technologies; Albertsons, Vons, and Safeway grocery stores; Travelers Insurance and Lamps Plus

Residents are encouraged to follow the DA’s Office on social media for information and updates on consumer protection efforts. For more information on consumer protection resources and how to report fraud, visit the DA’s website.

Deputy District Attorneys Kathryn Turner, Stephen Spinella, and Tom Papageorge are prosecutors who specialize in consumer protection and handle these complex cases.

 

Prison, Restitution Ordered for Woman Who Forged Real Estate Documents

San Diego County District Attorney Summer Stephan said today a woman who illegally recorded false real estate documents involving two different San Diego County properties was sentenced Wednesday to two years in state prison and ordered to pay $110,000 in restitution. A jury convicted 58-year-old Farrah Nazemi last month of three felony counts of recording false documents and one felony count of forgery. Superior Court Judge Robert Amador handed down the sentence during a hearing downtown. The District Attorney’s Economic Crimes and Consumer Protection Division’s investigation led to the felony charges.

“The investigation and prosecution of real estate fraud is important and complex, and this case is a stark reminder of the impact of real estate fraud,” said DA Stephan. “The defendant’s deliberate actions to forge legal documents and seize homes that were not hers caused real harm to rightful property owners. I’m proud of the work by our Real Estate Fraud Unit to uncover the truth and hold her accountable, sending a clear message that this kind of deception won’t be tolerated in San Diego County.”

Farrah Pirahanchi Nazemi recorded two false documents in November 2019 related to a property in Bonita.  She recorded the documents in an unsuccessful attempt to prevent the foreclosure of and her eviction from a house she formerly owned in Bonita. The defendant lost her unlawful detainer case and left the Bonita property only after she was locked out by the San Diego Sheriff’s Department in January of 2020.

After leaving the Bonita property, Ms. Nazemi moved into a house in Vista where her brother was living at the time. Her brother had previously entered into a contract to purchase the Vista property from the owner in exchange for an apartment in Tehran, Iran and cash to make up the difference in value. The sale/exchange fell through and in the settlement of the subsequent lawsuit, Nazemi’s brother agreed to vacate the Vista property.  Her brother moved out, but Nazemi refused to leave.  She forged the owner’s signature on a recorded a Grant Deed transferring the Vista property from the owner to herself.

Nazemi was caught after the owners of the properties involved reported the crimes to the Real Estate Fraud Unit of the San Diego County District Attorney’s Office. The case was investigated by District Attorney Investigator Michael Brown who interviewed numerous witnesses and collected hundreds of documents.  The investigation culminated with the search of the Vista property where Ms. Nazemi was living.  At the residence, Investigators found the original copies of the false recorded documents, fraudulent county recorder’s stickers, other forged documents, and a stolen notary stamp. Deputy District Attorney John Dunn used this evidence to build a successful prosecution and present a compelling case to the jury, which found the defendant guilty on all four felony counts.

If you suspect you are a victim of real estate fraud, or have knowledge of such activity, please report the information to the District Attorney’s Office on its public website here.

Owner Alert is a free real estate fraud notification service from the County Assessor/Recorder that sends an immediate email notification to subscribed property owners anytime a document is recorded in their office that transfers title to your property.

The DA’s Economic Crimes and Consumer Protection Division is responsible for prosecuting a wide variety of wrongdoings, including elder financial abuse, consumer protection, price gouging, false advertising, cybercrimes, complex identity theft, investment scams, embezzlements, real estate matters, counterfeit goods, organized retail crime, and environmental crimes. It’s one of the few divisions in the District Attorney’s Office that initiates investigations.

The District Attorney has a dedicated Real Estate Fraud Unit that’s part of the division, focused on investigating cases such as forged loan or title documents, fraudulent transfers or foreclosures, scam trust deeds, home‑equity and rescue scams.

DA’s Consumer Protection Unit Receives Proclamation

On April 8, 2025 the County of San Diego Board of Supervisors recognized the San Diego District Attorney’s Consumer Protection Unit (CPU) for their outstanding work protecting the citizens of our county as well as consumers throughout the state. The CPU is a subdivision of the Economic Crimes and Consumer Protection Unit of the District Attorney’s Office. This unit is responsible for civil and criminal actions against businesses that practice unfair, deceptive and abusive practices harming consumers throughout the state. The unit was recognized for their excellence and commitment to the investigation and prosecution of violations of California’s Unfair Competition Law, False Advertising Law and other related consumer protection statues. Since its formation the team has brought justice through 230 major civil consumer protection judgments and more than 400 criminal consumer fraud convictions.

Recent successful cases include a $24.6 million judgment against Apple for failing to disclose software updates that slowed older iPhones with failing batteries to prevent software crashes, a $3.55 million judgment against Welk Resorts Inc. for misleading marketing and sales tactics in timeshare sales, a $3.96 million judgment against Vons/Albertsons over false advertising and overcharging customers, and an $18.8 million judgment against Time Warner Cable, including $16.9 million in direct consumer restitution, for misrepresenting internet services.

At the proclamation ceremony April 8, 2025 was declared Consumer Protection Day in San Diego County!

DA Kicks Off National Consumer Protection Week with Renewed Commitment to Fighting Fraud

San Diego County District Attorney Summer Stephan kicked off National Consumer Protection Week today by highlighting ongoing efforts to protect our community from fraud, scams, and deceptive business practices. This annual event, observed March 2 to 8, serves as a reminder of the importance of consumer education and enforcement actions to safeguard the community.

The DA’s Economic Crimes Division investigates and prosecutes fraud and unlawful business practices in the marketplace. The Consumer Protection Unit, a section in the Economic Crimes Division, is a team of experienced attorneys, investigators, and other professional staff who investigate and evaluate reports of fraudulent and unfair business practices and determines appropriate action.

Last year, the Consumer Protection Unit filed several civil actions related to unfair or deceptive business practices that netted a total of $14,652,500 in statewide civil judgments. The cases involved illegal automatic renewals, improper pricing policies and pricing inaccuracies. Companies that reached settlements with the DA’s Office include Thrive Market Technologies; Albertsons, Vons, and Safeway grocery stores; Travelers Insurance and Lamps Plus.

“The civil actions we file protect the consumer and hold corporations accountable when they fail to follow the laws in place to ensure the public is getting accurate and fair pricing information on products they purchase and companies aren’t using fine print to trigger costly automatic renewals that take advantage of unsuspecting consumers,” said DA Stephan. “By joining forces with other District Attorney Offices in the state, our combined efforts are protecting Californians up and down the state.”

As part of the week’s events, the DA’s Office will be participating in a National Consumer Protection Fair on March 5 from 11:00 a.m. to 1:00 p.m., at the County Operations Center, located at 5520 Overland Avenue. The fair is being hosted by the County’s Agriculture, Weights and Measures Department and will include a number of representatives from the county’s Consumer Protection Task Force. The annual fair will be the first one held since it was stopped during the Covid pandemic.

Consumer protection cases are developed in several ways, including information from law enforcement and regulatory agency investigations, referrals from consumer protection prosecutors in other areas of California, and complaints from the citizens of San Diego through our Consumer Complaint Form process. The DA’s office is committed to supporting the San Diego community and providing a means of reporting individuals and businesses engaged in unlawful business practices.

Residents are encouraged to follow the DA’s Office on social media for information and updates on consumer protection efforts. For more information on consumer protection resources and how to report fraud, visit the DA’s website.

Gavel & Open Law Book

Lamps Plus to Pay $4.1 Million to Settle Civil Suit

San Diego County County District Attorney Summer Stephan announced today that Lamps Plus, Inc., a California Corporation, Illumine Midco, Inc., and Illumine Finco, Inc., have entered into a stipulated judgment and will pay a total of $4.1 million dollars to settle a civil law enforcement complaint that alleges Lamps Plus engaged in false advertising and unfair competition. The Consumer Protection Units of the District Attorney Offices of San Diego, San Bernardino, Riverside, and Los Angeles counties investigated and prosecuted this matter, and the case was filed in Riverside County Superior Court.

The civil complaint filed by prosecutors alleged that Lamps Plus unlawfully advertised price protection policies— including a price match and a 120% price match guarantee— without clear and conspicuous disclosures that such policies did not include Lamps Plus own-brand products and contained other exclusions.

Lamps Plus is also alleged to have used the “Compare at” and “Comparable Value” sales tags to indicate a bargain price, even where the product sold was an own-brand product with no competitor product in the market or where the comparable product was not of similar design and quality.  Likewise, the “Strike Through” advertised reference price on sales tags is alleged to have been used to indicate a bargain price even where the advertised former price was not an actual former price.

“Civil actions like this one protect the consumer and hold corporations accountable when they fail to follow the laws in place to ensure the public is getting accurate and fair pricing information on products they purchase,” said DA Stephan. “By joining forces with other District Attorney Offices in the state, our combined efforts are protecting Californians up and down the state.”

The Judgment requires Lamps Plus to pay $3,800,000 in civil penalties and $300,000 in costs to cover investigative costs and support future enforcement of consumer protection laws. Lamps Plus has not admitted any liability or wrongdoing but cooperated with the District Attorneys’ investigation.

The judgment includes an injunction that prohibits Lamps Plus from offering a 120% Price Protection Policy, and from advertising any Price Match Guarantee Policy in a manner that results in the Price Protection Guarantee Policy being false or misleading.

The judgment also prohibits advertising of any advertised reference price based on a formula, algorithm, or other method that results in the advertised reference price being false or misleading or results in the advertised reference price having the tendency or capacity to deceive or mislead.

In San Diego, the case was handled by Deputy District Attorney Colleen E. Huschke of the DA’s Consumer Protection Unit. The DA’s Economic Crimes Division is responsible for prosecuting a wide variety of wrongdoing, including elder financial abuse, computer intrusion, complex identity theft, investment scams, embezzlements, real estate, counterfeit goods, environmental crimes and the theft of public assistance funds.  The Division’s Consumer Protection Unit protects San Diego consumers and honest businesses by filing civil and criminal actions to prohibit unfair business practices within the marketplace.

Home Depot to Pay Nearly $2 Million

San Diego County District Attorney Summer Stephan announced today that Home Depot U.S.A. Inc., entered into a stipulated judgment and will pay $1,977,251 to settle a civil law enforcement complaint that alleged Home Depot engaged in false advertising and unfair competition.

The action was filed in San Diego Superior Court by the DA’s Consumer Protection Unit along with the District Attorneys of Alameda, Los Angeles, Orange, San Bernardino, and Sonoma counties.

The civil complaint filed by prosecutors alleged that Home Depot charged customers prices higher than Home Depot’s lowest advertised or posted price. The problem is often called a “scanner violation,” which is when the price on the item, or on the item’s shelf tag, is not the same once the UPC code is scanned at the point-of-sale device or register.

“Our Consumer Protection Unit is committed to ensuring businesses charge consumers their lowest advertised or posted price,” said DA Stephan. “In addition to county agencies monitoring companies’ actions, the public can also help ensure that scanner prices and shelf tag prices are the same by checking receipts and reporting overcharges.”

The judgment includes an injunction that prohibits Home Depot from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. The judgment requires Home Depot to implement a Price Accuracy Program which adds additional audits and training and eliminates price increases on weekend days.  The new price accuracy procedures will assist Home Depot with compliance with California’s pricing accuracy requirements.

The judgment requires Home Depot to pay $1,700,000 in civil penalties and $277,251 in costs and restitution to cover investigation costs and support future enforcement of consumer protection laws. Home Depot has not admitted any liability or wrongdoing but has cooperated with the weights and measures inspectors throughout the state and with the prosecutors.

The San Diego County Department of Agriculture, Weights and Measures, is the agency that inspected Home Depot throughout San Diego County and is instrumental in monitoring retailers to make sure that consumers are being charged the correct price. Consumers may report overcharges to Weights and Measures online by using the General Consumer Complaint Form or by calling 1-888-TRUE-SCAN (878-3722) (toll free) or e-mail wm.awm@sdcounty.ca.gov.

Deputy District Attorney Kathryn Turner was the prosecutor for the San Diego County District Attorney.

DA Announces $925K Consumer Settlement

San Diego County District Attorney Summer Stephan announced today that the diet supplement company, American Behavioral Research Institute, LLC, (“ABRI”), maker of Relaxium, agreed to a Court ordered judgment that includes injunctive relief and civil penalties and costs of $925,000.  The judgment was entered today in the Santa Cruz Superior Court and arose from alleged violations the California Automatic Renewal Law (ARL) and False Advertising Law (FAL). The Automatic Renewal Law is designed to prevent companies from automatically renewing subscriptions without the consumer’s knowledge. The False Advertising Law is designed to prevent companies from making unsupported claims about their products.

“We are committed to protecting customers by ensuring they aren’t deceived by automatically renewing charges that are not properly disclosed,” DA Stephan said. “Consumers are bilked out of millions of dollars when companies violate our automatic renewal laws, but working with our law enforcement partners across California, we are holding such companies accountable.”

The District Attorney Offices of San Diego County, Santa Clara County, Santa Cruz County, Los Angels County, Santa Barbara County and the City Attorney of Santa Monica filed the civil action as part of the California Automatic Renewal Task Force (CART). An investigation by CART found that the company did not properly disclose to its customers that their subscriptions would be automatically renewed after a trial period. Under California law, online businesses must clearly and conspicuously disclose all automatic renewal charges, terms of sale and obtain affirmative consent to those recurring charges from the consumer.

The lawsuit filed in Santa Cruz County Superior Court by the joint taskforce of prosecutors, reached a stipulated resolution against the out of state company that imposes an injunction and assesses civil penalties and costs. It also orders restitution specifically to California consumers through a class action case already arranged.

ABRI cooperated in this resolution and, without admitting liability, agreed to change its misleading advertising disclosures in its advertisements, product packaging and website.

The California Auto Renewal Task Force (CART) primarily investigates businesses for violations of the California Automatic Renewal Law and federal statutes regulating automatic renewal contracts. However, when appropriate, it investigates other law violations in conjunction with ARL violations. Deputy District Attorney Stephen Spinella with the DA’s Consumer Protection Unit assisted in the case for the San Diego County District Attorney’s Office.