Probe Targets Ads Resembling Bills
The U.S. Postal Inspection Service has charged a Santa Ana company with duping employers nationwide into paying thousands of dollars for “help wanted” advertisements they did not order.
The Postal Service said that Employment Classifieds sends employers solicitations that look like bills for “help wanted” advertisements that have appeared in other publications. Postal Inspector Ed Lawee said that a disclaimer printed on the solicitations in yellow and blue ink is hard to read and does not meet postal regulations.
“We are alleging that these forms are false bills,” said Lawee, calling the solicitations “a scam.”
Employment Classifieds office manager Gus McPherson said the company is not trying to trick employers with its solicitations. He said he was unaware of charges against the company. McPherson said the ads appear in a publication that is distributed free of charge to 20,000 readers in Orange County.
Among the firms receiving a solicitation was JWT Telecom of South Hackensack, N.J., which advertised in newspapers for entry-level stockroom help. JWT employment coordinator Sherrill A. Curtis spotted the Employment Classifieds “invoice” for $172.60 and didn’t pay it.
“I’m sure the company will say the disclaimer is there, but for people who handle a large volume of bills, they’ll just pay it,” Curtis said.
Erica Lynn Kortje, identified as the owner of Employment Classifieds, could not be reached. A hearing on the charges is scheduled for Oct. 29 in Los Angeles.
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Frozen out: Inexpensive fresh chicken could be harder to find after a new state law takes affect Jan. 1.
Gov. Pete Wilson has signed legislation defining a fresh chicken as one that hasn’t been cooled to 25 degrees Fahrenheit. The law makes it harder for non-California growers to ship “fresh” chicken into the state.
The law favors California chicken giants Zacky Farms and Foster Farms, which have been losing sales to low-cost competitors from the South. California growers can keep chicken above 25 degrees because it spends two-thirds less time in a refrigerated truck than Southern chicken, sold under the Pilgrim, Country Pride, Tyson, Hudson and Randall labels.
Southern growers aren’t likely to abandon California, though they may have to stop labeling their chicken “fresh.” The change could put them at a disadvantage with consumers who prefer fresh chicken.
The National Broiler Council, a trade association representing chicken growers throughout the country, including California, opposes the law and is considering a federal court challenge. The U.S. Department of Agriculture permits growers to call chicken fresh if it is above 0 degrees.
“We think this law is in conflict with the USDA,” said George Watts, National Broiler Council president. “This is strictly a marketing issue. The California producers are erecting a barrier to trade.”
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No guarantees: Without admitting wrongdoing, two financial services firms have agreed to settle charges in New York that they misrepresented the risks or costs of certain mutual funds.
Franklin Valuemark II Fund, based in San Mateo, agreed to discontinue an ad that read, “Retirement income guaranteed for life.” The New York Department of Consumer Affairs said the ad was misleading because it implied no risk. Franklin also paid the department $5,000 to defray the cost of the investigation.
Charles Schwab & Co., a San Francisco discount brokerage, agreed not to claim that mutual funds have “no fees” if that isn’t the case. The New York Department of Consumer Affairs had charged that a Schwab advertisement misled consumers about fees. Schwab also paid the department $2,500 to defray investigation costs.
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Update: Gov. Pete Wilson has signed legislation sponsored by Assemblyman Sal Cannella (D-Modesto) that prohibits credit card companies from compiling and selling information about cardholders without written approval. . . . Legislation previously mentioned in this column that would have required fast-food restaurants to cook beef to 155 degrees failed in the state Senate. The legislation, sponsored by Assemblywoman Diane Martinez (D-Rosemead), was prompted by an outbreak of food poisoning in Washington state linked to undercooked, contaminated hamburgers.
