State Accuses Film Company of Deception

A film processing and marketing company in Irvine has been charged with making false and misleading statements about its nationwide business opportunity program, according to a lawsuit filed by the state attorney general’s Consumer Law Section office.

The suit alleges that Photo Concepts International Inc. intentionally misled people in selling them a $10,000 dealership program.

Darrel Piercy, the company’s president and owner, denied the charges and said he is confident the matter will be resolved in his favor in court.

The suit, filed earlier this week in Orange County Superior Court, alleges that Photo Concepts International told would-be dealers they could sell an average of three to five coupon books a day for photo-processing services, when actual sales were much less.

The firm also provided assurances that it would buy back the telecomputers if dealers wanted to quit the business, the suit said. However, few dealers who returned the equipment received any payment, according to Deputy Atty. Gen. M. Howard Wayne. The suit also alleges the company failed to pay its dealers promised commissions on processed rolls of film.

Seeks Court Order

The state’s action seeks a court order prohibiting the alleged illegal business practices, civil penalties of at least $500,000 and restitution for an unspecified number of Photo Concepts International customers.

“The majority of our dealers are overwhelmingly successful,” said Piercy in an interview Thursday. He said the state overreacted to a “handful of complaints.” Piercy declined to say how many dealers the 4-year-old company has but said gross sales are in “the millions of dollars.”