Orkin Trapped Its Customers, Judge Rules; Fee Hike Voided

America’s biggest termite exterminator trapped and squeezed customers by raising what had been annual fixed renewal fees, a Federal Trade Commission judge ruled today.

Judge Ernest Barnes, in upholding a May, 1984, FTC complaint against Orkin Exterminating Co., ordered the Atlanta firm to roll back rates for persons whose pre-1975 contracts called for fixed renewal fees.

Barnes said the financial injury suffered consumers was substantial, noting that by May, 1981, “Orkin had received $1.2 million in annual fees in excess of the sums of the amounts specified in the pre-1975 contracts.”

Although he ordered no refunds, an FTC spokesman said the full commission could decide to seek such redress following final action on the complaint.

The administrative law judge’s order will become final unless Orkin or the FTC appeals the decision within 30 days.

An Orkin spokesman said the company would have no comment until it read Barnes’ 94-page ruling.