Phoenix, Arizona - Attorney General Mark Brnovich announced today that over 1,300 Arizonans who purchased home warranty services from Amazon Home Warranty, LLC (AHW) will receive restitution as a result of a consent judgment his office (AGO) obtained against AHW.
“My office is vigilant every day in the fight against deceptive practices, especially in the home warranty industry,” said Attorney General Brnovich. "All companies must be truthful at every level with their marketing and advertising.”
Earlier this year, the AGO filed a lawsuit against AHW and its affiliated companies alleging that AHW and its officers – Harry Bailey, Marc Abady, and Leo Kassin – violated the Arizona Consumer Fraud Act. The AGO lawsuit alleges the defendants posted bogus five-star reviews, falsely represented that the company had been in business for nearly 10 years, and misled consumers about the identity of the company’s officers. The home warranty company is not affiliated with Amazon.com.
Under the consent judgment (pending court approval), AHW will pay $105,000 in consumer restitution, $35,000 in civil penalties, $10,000 in attorneys’ fees, and the cost of a claims administrator to expeditiously disburse consumer restitution. The agreement also requires significant injunctive relief to prevent the company and the individual defendants from engaging in similar conduct in the future.
Today’s consent judgment with AHW resolves another lawsuit Attorney General Brnovich filed against home warranty companies. The AGO obtained a consent agreement against Landmark Home Warranty, securing up to $1 million in restitution for 26,000 Arizona consumers after that company failed to provide promised expedited services. The AGO also has an ongoing lawsuit against Choice Home Warranty.
Assistant Attorney General Syreeta Tyrell, Unit Chief Counsel Matthew du Mee, Senior Litigation Counsel Joshua Whitaker and Assistant Attorney General Gregory May handled the investigation.
If you believe you have been the victim of consumer fraud, you can file a consumer complaint by visiting the Attorney General’s website. If you need a complaint form sent to you, you may contact the AGO in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.