Estimated read time: 4-5 minutes
- The Utah Department of Commerce is suing Action Plumbing for alleged predatory practices.
- Investigations revealed alleged deceptive tactics targeting vulnerable adults, including elderly people.
- Authorities seek license revocations and damages; Action Plumbing hasn't commented yet.
SALT LAKE CITY — The Utah Department of Commerce is taking legal action against Action Plumbing, Heating, Air and Electric and 12 of the company's associated electricians and plumbers, demanding substantial fines, consumer redress and the revocation of professional licenses.
A statement from the department accuses the company and 12 of its electricians and plumbers of "systemic lack of supervision and deceptive business practices" and says the department's actions stem from "repeated allegations of misleading homeowners and exploiting vulnerable adults."
In fact, a joint investigation by the Utah Divisions of Professional Licensing and Utah Department of Consumer Protection revealed a "disturbing" pattern of elder abuse.
"Action continually employed deceptive scare tactics to pressure homeowners into unnecessary and expensive services even when they knew some of their customers were vulnerable adults," the statement says.
The complaint filed in 3rd District Court alleges: "One Action employee even had an elderly woman with dementia sign checks — taken from her but written out by him — for over $50,000. The victim did not need the services offered, and she later could not recall ever agreeing to them or signing the checks written out by the employee."
The complaint says those actions were brought to Action's attention months ago by the state agencies, but says the company never disciplined the employee "and his practices have never been remediated."
In a separate incident, that same electrician noted that he was dealing with another elderly person with dementia and that he would "hopefully upsell," according to the Utah Department of Commerce.
Action Plumbing, Heating, Air and Electric did not immediately respond to a request for comment when contacted Friday by KSL.com.
The complaint says many of the company's employees are compensated exclusively on a commission structure that "rewards high-dollar sales over competent work. Action employees engage in door-to-door sales and unregistered cold calling to generate leads and close deals. And Action's management trains its employees to 'upsell' services to consumers and close 100% of their deals."
Other alleged incidents include employees overstating or outright lying to homeowners about fire safety risks with their homes' electrical systems to upsell services. However, after getting a second opinion, homeowners found that the quoted work was unnecessary and their electrical systems were completely safe, according to the commerce department.
The complaint filed by the Utah Attorney General's Office says Action employees use "fearmongering" and "deceptive communications" to convince homeowners to buy expensive and unnecessary services.
"They tell consumers that extremely expensive electrical, plumbing, or HVAC services are necessary for the functioning of their homes — or even the safety of their children. A consumer with a perfectly functioning furnace is told that it needs to be replaced for tens of thousands of dollars. A homeowner with an electrical panel that needs only an inexpensive switch replacement is told that the entire unit must be upgraded or their house will catch fire," the complaint states.
"To push deals even more, Action represents (tell) consumers that its prices are the 'fairest' in town," but actually "far exceed other plumbers, electricians and HVAC technicians in the state, often by double, triple, or even more."
The complaint alleges that Action charged an elderly woman with dementia $22,120 for the replacement of 50 "Decora type switches" even though the actual cost of those switches is only $1 each.
"The alleged deceptive business practices of Action Plumbing, Heating, Air and Electric are reprehensible," Margaret Woolley Busse, executive director of the Utah Department of Commerce, says in the statement. "To target and exploit vulnerable Utahns, especially senior citizens and individuals with dementia, is unconscionable. These predatory business practices have no place in our state and we will hold those responsible accountable. We put on notice any would-be exploiters of vulnerable adults: We will come after you."
Additionally, the complaint details allegations of Action prioritizing sales over quality workmanship, raising further consumer protection concerns.
"Of the estimated 120 employees, only five held master licenses. The remaining employees were underqualified and not properly supervised for the work they performed," the statement says. "This lack of qualifications, which the company frequently misrepresented to consumers, has resulted in numerous complaints of unsafe and substandard work, putting homeowners at risk of hazards like flooding, electrical fires and carbon monoxide poisoning."
The Utah Division of Professional Licensing is seeking to revoke Action's licenses and professional licenses of a dozen plumbers and electricians employed by the company. The complaint asks for a jury trial and seeks damages for consumers, civil fines and penalties and attorney fees.
The complaint seeks action against Connectionz Acquisition LLC and Connectionz Funnel LLC dba Action Plumbling, Heating, Air & Electric and other names, including 24 Hour Rooter Connectionz Plumbing & Drain Cleaning; Action Electric; 24 HR Rooter Connectionz; Action Man Rooter; 24 Hour Rooterman; Connectionz Plumbing; Connectionz Plumbing Heating and Air; AAA-Action Rooter; and ReScope Drain Aid.
People can file a complaint with the Division of Consumer Protection at dcp.utah.gov.
