PHOENIX — A home warranty company has agreed to pay $105,000 in restitution and other fees to Arizona after the state accused them of posting fake, five-star reviews online.
The Arizona Attorney General's Office announced last week it had reached an agreement to settle a consumer fraud lawsuit filed against Amazon Home Warranty LLC earlier this year.
The agency had alleged Amazon Home would take online reviews posted by customers of another home warranty company's website and repurposed them to look like they were written by their customers.
The state's lawsuit accused the defendants of posting bogus five-star reviews, falsely representing that the company had been in business for 10 years, and misleading consumers about the identity of the company’s officers.
The home warranty company is not affiliated with Amazon.com.
According to the consent agreement, the defendants will pay $105,000 in consumer restitution, $35,000 in civil penalties, $10,000 in attorney fees, and the cost of a claims administrator to disburse consumer restitution.
Over 1,300 Arizonans who purchased warranties from the company may be entitled to receive a portion of the restitution.
“My office is vigilant every day in the fight against deceptive practices, especially in the home warranty industry,” Attorney General Mark Brnovich said last week. "All companies must be truthful at every level with their marketing and advertising.”
Anyone who believes they've been the victim of consumer fraud can contact the Attorney General's Office in Phoenix at 602-542-5763 or in Tucson at 520-628-6648.
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