Penguin Windows settles suit over alleged misleading claims
MUKILTEO, Wash. -- You've probably heard or seen the ads for Penguin windows. The promise: They would cut your energy bills by at least 40 percent.
Turns out, the State Attorney General's Office charges, the company could not back up that claims. "And that the claims themselves were false," said Assistant Attorney General Jack Zurlini.
Overall, the Attorney General’s Office accused Penguin of misrepresenting its products, making false claims about the energy savings customers would achieve, and misleading consumers into thinking that the in-home appointments they set up with Penguin were something other than sales calls.
Tuesday, Penguin settled a lawsuit filed by the state that alleged the company used a number of deceptive claims to sell its windows -- not only the energy claims, but the pricing claims.
Zurlini says Penguin sales people started their pitch by offering the job at the retail price.
"They never sold, or very few if any of their jobs at the retail price, was the allegation, therefore consumers were misled into thinking they were getting substantial discounts when in fact they were buying at the regular price," Zurlini said.
But Penguin's Director of Operations, Vaughn McCourt, said while his company doesn't agree with the state's allegations, "we do intend to make changes to our marketing and sales process to ensure that we are in full compliance with the consent decree and the law. We think these changes will make Penguin Windows a stronger company and set new stands of professionalism for the home improvement industry."
In settling the lawsuit, Penguin does not admit doing anything wrong. Penguin agreed to terms that include prohibiting it from making misrepresentations to gain entry into a home, failing to substantiate advertising claims, interfering with cancellation rights and continuing in-home sales presentations after a customer has clearly stated that he or she wishes it to end.
In return, the Attorney General’s Office agreed to suspend $25,000 in civil penalties provided Penguin abides with consumer protection laws in the future. The company will pay $95,000 in attorneys’ fees and legal costs.
Turns out, the State Attorney General's Office charges, the company could not back up that claims. "And that the claims themselves were false," said Assistant Attorney General Jack Zurlini.
Overall, the Attorney General’s Office accused Penguin of misrepresenting its products, making false claims about the energy savings customers would achieve, and misleading consumers into thinking that the in-home appointments they set up with Penguin were something other than sales calls.
Tuesday, Penguin settled a lawsuit filed by the state that alleged the company used a number of deceptive claims to sell its windows -- not only the energy claims, but the pricing claims.
Zurlini says Penguin sales people started their pitch by offering the job at the retail price.
"They never sold, or very few if any of their jobs at the retail price, was the allegation, therefore consumers were misled into thinking they were getting substantial discounts when in fact they were buying at the regular price," Zurlini said.
But Penguin's Director of Operations, Vaughn McCourt, said while his company doesn't agree with the state's allegations, "we do intend to make changes to our marketing and sales process to ensure that we are in full compliance with the consent decree and the law. We think these changes will make Penguin Windows a stronger company and set new stands of professionalism for the home improvement industry."
In settling the lawsuit, Penguin does not admit doing anything wrong. Penguin agreed to terms that include prohibiting it from making misrepresentations to gain entry into a home, failing to substantiate advertising claims, interfering with cancellation rights and continuing in-home sales presentations after a customer has clearly stated that he or she wishes it to end.
In return, the Attorney General’s Office agreed to suspend $25,000 in civil penalties provided Penguin abides with consumer protection laws in the future. The company will pay $95,000 in attorneys’ fees and legal costs.