LANSING, MI (WKZO AM/FM) — As Michigan Attorney General Dana Nessel is continuing her crackdown against illegal COVID-19 profiteering, the number of reported incidents are only increasing.
By Tuesday, Nessel’s office reported that the total number of consumer complaints over price gouging is now almost 1,600. Monday, the last reported numbers were just over 1,400.
The latest businesses brought to Nessel’s attention are Frequency Apps Corp. and Biores Technologies Inc., which are two related companies located in Rockford.
These companies are accused of selling a “Coronavirus Defender Patch,” which the companies falsely claim will help protect people from contracting COVID-19.
The companies say the patch will “help aid the immune system to defend itself against exposure to the virus,” and “can help lessen the effect of the virus if you already have” it. Nessel says the patch was priced at $49.99, but the companies stated that consumers could receive a 30-day supply of the patch for free when they buy a 45-day supply of any patches the companies sell.
According to a cease and desist letter from the AG’s office, a consumer was concerned about this product because it causes purchasers “to have a false sense of security and to ignore proper safety methods to prevent the spread of the virus.”
The office says these concerns are well-founded.
“Providing consumers with a false sense of security that these patches could somehow protect them from this virus is simply wrong,” Nessel said in a statement. “I will not tolerate deceptive and misleading business practices at any time, but especially not during this time of uncertainty surrounding Michigan’s battle with COVID-19.”
The companies are likely in violation of the Michigan Consumer Protection Act because they may be:
- Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits or quantities that they do not have, or that a person has sponsorship, approval, status, affiliation or connection that he or she does not have.
- Failing to reveal a material fact, the omission of which tends to mislead or deceive the consumer, and which fact could not reasonably be known by the consumer.
- Causing coercion and duress as the result of the time and nature of a sales presentation.
- Making a representation of fact or statement of fact material to the transaction such that a person reasonably believes the represented or suggested state of affairs to be other than it actually is.
The companies have 10 days to respond to the letter by agreeing to not market or sell the patches to Michigan consumers. They must also provide contact information for all consumers who purchased the patches.
“Your inappropriate sales tactics are especially concerning in light of the public health emergency Michiganders face, which unfortunately cannot be simply patched up as you suggest,” officials said in the letter.
In order to report any businesses suspected of price gouging or selling false products, consumers can file a complaint online or call the Consumer Protection tip line at 877-765-8388. Hours of operation are between 8:30 a.m. and 4:30 p.m. Monday through Friday.
All updated information about COVID-19 can be found online at a state website focused on the issue, and at the Centers for Disease Control and Prevention.
