Governor to Introduce Bill Addressing Attorney General’s Overreach of Authority

AUGUSTA, Maine – Governor Paul R. LePage yesterday announced he is introducing legislation to prevent the Attorney General’s overreaching of authority.

The Governor’s proposed bill clarifies and restricts the scope of the Attorney General’s authority as it pertains to the receipt and spending of public dollars. Governor LePage initiated the bill as a result of Attorney General Janet Mills taking unilateral action after the State of Maine received a $21.5 million settlement.

In a letter to Legislative leadership, Governor LePage cites McGraw-Hill and Standard & Poor’s litigation in which an agreement of the settlement allocates to the State of Maine $21.5 million – “the largest ever one-time settlement in Maine history,” according to the Attorney General.

The settlement stipulates the amounts allocated to the State are to “be used or expended in any way permitted by applicable state law at each State’s sole discretion.” Instead, Attorney General Mills has reserved to herself “sole discretion” over how the money would be used within a list of specified purposes related to consumer protection, the Governor explains in the letter.

“She does not have the authority to take settlement proceeds on behalf of the state and unilaterally make policy decisions about how that money should be spent,” the Governor wrote to legislative leaders. “Not only does her action overstep her authority, but it is also repugnant to the constitution. As you well know, the constitution clearly asserts that the power to appropriate revenue is held exclusively by the Legislature and checked by the Executive.”

Attorney General warns Mainers to be suspicious of callers demanding immediate payments

Attorney General Janet T. Mills reports that her Office has received many recent reports of aggressive calls from scammers demanding immediate payments on supposed debts. The common thread among the scammers is that they attempt to get you to make a payment by wire transfer or pre-paid debit card. Mainers should be very suspicious of anyone calling out of the blue and demanding an immediate payment of a debt, especially if they require that payment by any reloadable cash cards such as Green Dot Money Pak or a wire service like Western Union.

"The names and the details of the scams vary," Attorney General Mills said. "Typically the caller pretends they are from a business that you know and are attempting to collect an old debt. Perhaps they say you have won a lottery. Sometimes they even claim to be from the state or federal government. The caller has just enough information about you that you believe they are legitimate. The red flag, however, is that they want you to make an instant payment with a pre-paid debit card or wire transfer. This is how you know you are getting scammed. Hang up the phone immediately."

In this information age, a scammer can glean a lot of information about a person from the internet. They may

Attorney General Janet Mills Announces Lawsuit Against Used Car Dealers

Augusta, Maine - Attorney General Janet T. Mills announced today that her Office has filed a lawsuit in the Penobscot County Superior Court against Glenn A. Geiser, Jr. and his dealerships - Bangor Car Care, Inc., Bumper2Bumper, Inc. and My Maine Ride - for unfair and deceptive trade practices in connection with the promotion and sale of used cars.

The complaint alleges that the defendants target consumers with poor credit who need financing, pressure them to buy cars that are not road worthy and then not respond to customer complaints. The State is seeking civil penalties and a permanent injunction to bar Geiser and any entity in which he has an ownership interest from promoting, selling and/or financing used cars. "These kinds of practices give Maine businesses a bad name," said Attorney General Mills. "Targeting vulnerable people and duping them into buying cars that are not safe not only defrauds the consumer but puts every person traveling our roads at risk. We intend to put a stop to it."

Typically, consumers at Geiser's businesses are shown cars that failed to pass inspection so they cannot be taken out for a test drive. Known mechanical defects are not disclosed to the consumer, as required by State law. When a consumer decides to buy, defendants complete the financing documents and tell the consumer to return at a later date to pick up the car after it has gone into the shop for an inspection sticker. Many consumers already desperate for transportation are unable to get their cars when promised, and some have made payments on cars they did not receive. Some discover after they take delivery that their cars should not have passed inspection. Many cars break down or develop serious mechanical issues soon after purchase, but the defendants refuse to fix the problems. The Attorney General's complaint also alleges that the defendants' response to consumer complaints is rude and abusive and calculated to discourage consumers from seeking redress. These acts also constitute an unfair trade practice.

Maine law requires used car dealers to post a conspicuous notice that a car is an unsafe motor vehicle if it does not meet Maine's inspection standards and is displayed for sale. The dealer must also disclose certain information about a used car's history, including any known mechanical defect, even if it has been repaired, and to obtain written acknowledgement from the buyer. The buyer of an unsafe motor vehicle must tow it from the dealer's lot.

For information about the Used Car Information Act, or to file a complaint, consumers may contact the Consumer Protection Division at www.maine.gov/ag/consumer or by calling 1-800-436-2131.

The Maine State Police and the Maine Bureau of Motor Vehicles assisted with the Attorney General's investigation. The case is being handled by Assistant Attorneys General Carolyn Silsby and Linda Conti.

Attorney General Mills calls for trade deal to protect Maine's anti-tobacco efforts

Attorney General Janet T. Mills is troubled by a provision in a proposed international trade agreement that would negatively impact the ability of Maine and other states to protect the public health by regulating tobacco products. Attorney General Mills is calling on the United States Trade Representative to amend a provision that would treat tobacco products like any other product for sale. This provision could open state policies regulating tobacco products to challenge by other countries and ignores the devastating health affects tobacco has on Maine people.

AG Mills is concerned that a provision in the Trans-Pacific Partnership that would treat tobacco like any other product could open the landmark 1998 Tobacco Master Settlement Agreement [MSA], or even Maine's smoke-free workplace law, to challenge by other countries in a legal framework outside of the United States' normal proceedings. The MSA and other state and federal laws place major restrictions on the ability of tobacco companies to market their products and authorize states to enact a number of regulations to impact the sale, taxation and use of tobacco products.

"The MSA severely limited the ability of Big Tobacco to market their deadly products to children in America," said Attorney General Janet T. Mills. "Maine has a strong record of protecting the public health by using a broad strategy to keep products out of the hands of kids and to shield people from second-hand smoke. Despite the great strides Maine has made in cutting smoking rates, too many kids and adults in Maine are impacted by tobacco. We cannot allow our ability to protect the public health to be undermined by a trade agreement." The American Lung Association's 2014 State of Tobacco Control notes that 20.3% of Maine's adults and 15.2% of Maine youth are smokers. Nearly 2,235 Maine residents die per year due to tobacco-related illness - including 744 smoking-attributable lung cancer deaths and 660 smoking-attributable respiratory disease deaths. Overall, the American Lung Association estimates that tobacco use costs Maine's economy more than $1 billion a year.

Attorney General Mills joined 42 state attorneys general in sending the letter to Ambassador Michael Froman, the United States Trade Representative responsible for negotiating the Trans-Pacific Trade Agreement. The Attorneys General expressed their collective opposition to any proposals that undermine the ability of states to regulate tobacco or that subject those regulations to challenge under standards and forums that would not be available under United States law.

Attorney General Janet Mills Files Suit Against Festiva Vacation Club

Attorney General Janet T. Mills announced today that her Office has filed suit against Festiva Hospitality Group and its associated businesses and principals for unfair and deceptive practices in connection with Festiva's points-based "vacation club."

The ten-count complaint, filed in Kennebec Superior Court, alleges that Festiva sold Maine consumers "points" for membership in a vacation club at high pressure sales presentations held at the Rangeley Lake Resort and at its sales office on Riverside Drive in Portland. Festiva told consumers that they could use points to take vacations anytime at various Festiva resorts around the country, including those in Florida, the Carolinas, Missouri, and at Rangeley Lake. However, many consumers discovered after they signed a 40-year contract with Festiva that membership in its vacation club is not what they were told it would be.

A number of consumers have complained to the Attorney General's Office that it is impossible to book a vacation because of the lack of accommodations at Festiva's resorts, particularly at peak times and locations. People who bought these "points" thought they could save them to use for a vacation in another year but later found out that Festiva would not allow them to carry over points. They were also surprised to receive bills for higher and higher maintenance fees and special assessments. Consumers who tried to cancel their memberships were told they had signed a 40-year contract obligating them to pay fees and assessments, even if the purchaser is unable to schedule a vacation at a Festiva resort.

"Festiva pressures Maine consumers into buying an expensive but basically worthless product using misleading tactics," says Attorney General Mills. "Festiva tells them membership in its vacation club is a convenient and inexpensive way to vacation, but the reality is exactly the opposite. Consumers end up paying too much money for too long a time for a something that never materializes. Festiva promised dream vacations but delivered deception."

The complaint asks the court to order civil penalties, reimbursement to consumers and an injunction against these deceptive practices.

Maine Assistant Attorneys General Linda Conti and Carolyn Silsby are pursuing the claims against Festiva for the State of Maine. Other states also taking action against Festiva include Tennessee, Louisiana and Mississippi.

A copy of the Attorney General's complaint is on the web site at www.maine.gov/ag.

Consumers who have questions about Festiva or other consumer protection matters can contact the Attorney General's Office's Consumer Protection Division at www.consumer.mediation@maine.gov or by calling 1-800-436-2131 or 207-626-8849.