LANSING, Mich. — A Lansing company is in hot water after being accused of misleading dozens of businesses in multiple states to drum up business.
Attorney Generals from across the U.S. are warning residents, claiming Workplace Compliance Services is posing as the government to deceptively get paid.
Brothers, Joseph and Steven Fata, own the business and are named in the lawsuit.
Troy Baker, from the Better Business Bureau Western Michigan, told Fox 47, "The complaints aren't about the offer being made, the complaints are the way it's being made."
Workplace Compliance Services is a company that fills out forms for businesses to keep the business operating.
The BBB says Workplace Compliance Services is sending out letters in the mail that appear to be government documents, which is misleading.
“Businesses say the mailing looks official and leaves them with the impression that they are required by law to fill out the form and pay Workplace Compliance Services to process the forms,” says Phil Catlett, President of the Better Business Bureau Serving Western Michigan.
In most cases, the paperwork can be done by the business itself and can be filed for much less than the amount charged by Workplace Compliance Services.
"Workplace Compliance does fill out the paperwork for you and send it in," Baker said. "The difference is that in the case of Workplace Compliance, is that they charge you a couple of hundred dollars to do it when the state would charge you in some cases, 50 bucks."
Those practices have set off alarms in four states, including Florida.
The Attorney General there filed a lawsuit against Workplace Compliance in March.
"In 2002 both Steven and Joseph Fata signed an Assurance of Voluntary Compliance with the Florida Attorney General, and according to the lawsuit, the brothers “agreed that they would not use a solicitation or advertisement that could have the tendency or capacity to mislead consumers into believing that the solicitation was sent by or on behalf of a government. The Florida lawsuit alleges they have violated that agreement."
The Better Business Bureau has received more than 140 of these complaints across the country.
Fox 47's Megan Hiler went to Workplace Compliance Services in Delta Township on Tuesday for comment.
They closed the blinds on her and refused to open the door.
As she left, she was approached by a woman who gave her an email to use to submit questions. That email turned out to be a non-working email address.
The BBB hasn't had much luck contacting them either.
"We have reached out to both companies following the lawsuit in Florida, asking to learn more information about their company and where things stand. As of today's date, we have not received a response."
The BBB says that what Workplace Compliance Services is doing can be a legitimate business practice, but it needs to be presented that way.
"It needs to be presented in a way that is transparent," said Baker, "and isn't confusing to businesses who are looking at those forms."
The Better Business Bureau has the following advice for businesses:
- Know what is required by your state: Be sure you understand what paperwork is required to be filed or obtained, and the cost of those filings.
- Do your homework: Many companies offer services to help businesses file paperwork. It can be a legitimate service. Businesses should research offers received in the mail and know what they are buying.
- When in doubt, ask: If an offer appears to be from the government, check it out before sending money or information.
- Report complaints to the BBB: The Better Business Bureau is here to help. We are happy to answer questions from businesses and consumers. We also track complaints and are able to warn others when a pattern is spotted. Reports can be made at bbb.org/scamtracker.
You can read the full complaint with the link attached to this story.
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