MEDIATION ADDRESSES CONSUMER FRAUD EFFECTIVELY

The flexibility of mediation is well illustrated when used to address consumer fraud.

One example is a case in Ohio where the Attorney General filed a lawsuit on behalf of consumers against Burke Décor, LLC., a high-end luxury furniture store in business since 2007 with locations in Ohio and California, as well as online.

The state alleges more than 350 customers reported paying for furniture that never arrived. Estimated loses exceed $380,000. The Ohio AG lawsuit claims that Burke Decore violated the Ohio Consumer Safes Practices Act. The AG is seeking consumer restitution, civil penalties, and a court order to prevent the company from engaging in similar business practices in the future.

The company has denied liability citing a period of unusually high orders and problems with its credit card processing beyond its control.

The State of Ohio representing consumers arranged to meet with counsel from Burke Décor, LLC., at a court-appointed mediation session to negotiate a settlement.

Individual consumers could have opted for mediation on their own, but representation by the state’s AG is more likely to achieve a satisfactory result on their behalf.

The unique dynamic of mediation makes this possible compared to other options.