LANSING, Mich. — A Lansing company is in hot water after being accused of misleading dozens of businesses in multiple states to drum up business.
Attorney Generals from across the U.S. have filed lawsuits claiming Workplace Compliance Services is posing as the government to deceptively get paid.
Brothers, Joseph and Steven Fata, own the business and are named in the lawsuit.
Troy Baker, from the Better Business Bureau Western Michigan, told NEWS 10, "The complaints aren't about the offer being made, the complaints are the way it's being made."
Workplace Compliance Services, is a company that fills out forms for businesses to keep the business operating.
The BBB says Workplace Compliance Services is sending out letters in the mail that appear to be government documents, which is misleading.
“Businesses say the mailing looks official, and leaves them with the impression that they are required by law to fill out the form and pay Workplace Compliance Services to process the forms,” says Phil Catlett, President of the Better Business Bureau Serving Western Michigan.
In most cases, the paperwork can be done by the business itself, and can be filed for much less than the amount charged by Workplace Compliance Services .
"Workplace Compliance does fill out the paperwork for you and send it in," Baker said. "The difference is that in the case of Workplace Compliance, is that they charge you a couple hundred dollars to do it when the state would charge you in some cases, 50 bucks."
Those practices have set off alarms in four states, including Florida.
The Attorney General there filed a lawsuit against Workplace Compliance in March.
"In 2002 both Steven and Joseph Fata signed an Assurance of Voluntary Compliance with the Florida Attorney General, and according to the lawsuit, the brothers “agreed that they would not use a solicitation or advertisement that could have the tendency or capacity to mislead consumers into believing that the solicitation was sent by or on behalf of a government. The Florida lawsuit alleges they have violated that agreement."
The Better Business Bureau has received more than 140 of these complaints across the country.
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