LANSING – Attorney General Bill Schuette encourages Michigan residents to learn more about being a savvy consumer. The Department of Attorney General’s Consumer Protection Division is offering a variety of educational programs throughout the month of October aimed at keeping Michigan consumers safe and up-to-date on the latest scams.

THE OCTOBER PROGRAMS INCLUDE:

• Home Repair & Improvement – Learn the telltale signs of home repair scams, unscrupulous contractors, and how to navigate the home improvement process.
• Phone, Mail, & e-Scams – Learn the signs of scams prevalent in phone calls, mail, email, and texts, along with steps to take to minimize your risk of being victimized.
• Identity Theft – Learn about the signs of identity theft, how to protect your personal information online and off, and what to do if you become an identity theft victim
• Online Safety – Learn how to protect your devices, money, and personal information while online. Also provides information on how to avoid common and emerging online scams.
• In Home Care & Senior Residences – Learn about resources available to help you make the best decisions regarding care for yourself or your loved ones at home or in a senior residence.
• Investment Fraud – Learn how to recognize fraudulent investments and obtain objective facts about reverse mortgages and annuities. Also provides information on how to investigate both the seller and the product before investing.

CONSUMER PROTECTION EDUCATION NUMBERS

In 2017, the Department of Attorney General presented 723 consumer protection programs reaching 14,535 consumers. So far in 2018, the Attorney General’s Consumer Protection Division has held nearly 500 events educating more than 9,000 consumers.

OTHER CONSUMER PROGRAMS

In addition to the free educational programs, the Consumer Protection Division also publishes an electronic quarterly newsletter. To sign up to receive the newsletter or schedule a local presentation, visit the Attorney General’s website.

Schuette is also dedicated to protecting children across the state of Michigan, and his office runs safety programs like OK2SAY and Michigan Cyber Safety Initiative (CSI). These programs inspire Michigan students to share and respond to student safety threats and break the code of silence. In the 2017-2018 school year, more than a quarter of a million attendees went to an OK2SAY/CSI presentation.

To schedule a student safety presentation for the 2018-2019 school year, visit the OK2SAY website.

REGISTER FOR A CONSUMER EDUCATION PRESENTATION

Consumer Education Presentations are available for your group, club, or class on the topics outlined above.

To register for a presentation, please complete the online registration form. You may also print a copy of the registration form and submit it to the following address:

Michigan Department of Attorney General
Consumer Protection Division
P.O. Box 30213
Lansing, MI 48909

LANSING – Michigan Attorney General Bill Schuette today announced that he, along with the other 49 states and the District of Columbia, has reached an agreement with California-based ride-sharing company Uber Technologies, Inc. (Uber) to address the company’s one-year delay in reporting a data breach to its affected drivers.

As part of the nationwide settlement, Uber has agreed to pay $148 million to the states. Michigan will receive $1,803,472.49. In addition, Uber has agreed to strengthen its corporate governance and data security practices to help prevent a similar occurrence in the future.

“Companies have a responsibility to be upfront and transparent with their customers, employees, and stakeholders,” said Schuette. “Uber failed to do that and now they are seeing the consequences of their actions.”

CASE BACKGROUND

Uber learned in November 2016 that hackers had gained access to some personal information that Uber maintains about its drivers, including drivers’ license information pertaining to approximately 600,000 drivers nationwide. Uber tracked down the hackers and obtained assurances that the hackers deleted the information. However, even though some of that information, namely drivers’ license numbers for Uber drivers, triggered Michigan law requiring them to notify affected Michigan residents, Uber failed to report the breach in a timely manner, waiting until November 2017 to report it.

Michigan Settlement Details

Michigan will provide each Uber driver impacted in the state with a $100 payment. Eligible drivers are those drivers whose driver’s license numbers were accessed during the 2016 breach.  Some of those drivers may not still be driving for Uber today.  A settlement administrator will be appointed to provide notice and payment to eligible drivers.

The settlement between the state of Michigan and Uber requires the company to:

• Comply with Michigan data breach and consumer protection law regarding protecting Michigan residents’ personal information and notifying them in the event of a data breach concerning their personal information;
• Take precautions to protect any user data Uber stores on third-party platforms outside of Uber;
• Use strong password policies for its employees to gain access to the Uber network;
• Develop and implement a strong overall data security policy for all data that Uber collects about its users, including assessing potential risks to the security of the data and implementing any additional security measures beyond what Uber is doing to protect the data;
• Hire an outside qualified party to assess Uber’s data security efforts on a regular basis and draft a report with any recommended security improvements. Uber will implement any such security improvement recommendations; and
• Develop and implement a corporate integrity program to ensure that Uber employees can bring any ethics concerns they have about any other Uber employees to the company, and that it will be heard.

All 50 states and the District of Columbia are participating in this multi-state agreement with Uber.

Charity mails sweepstakes notices asking for donations to combat disease; but charity has no real charitable programs

LANSING – Michigan Attorney General Bill Schuette today announced a Notice of Intended Action and Cease and Desist Order against National Emergency Medicine Association of Edgewood, Maryland for over 600,000 violations of the Charitable Organizations and Solicitations Act. Violations included operating a fundraising scheme to defraud the public and diverting funds raised to other purposes. Over 30,000 donations – totaling nearly $200,000 – were received from Michigan donors.

“This group has been scamming people for years, preying on the generosity of Michigan’s donors and inflating the numbers on their financial statements,” said Schuette. “Donors can also protect themselves by researching charities before donating, and by reporting suspicious solicitations to my office.”

National Emergency Medicine Association (NEMA) has seven days to comply with the cease and desist order and 21 days to respond and work on reaching an appropriate agreement. If an agreement cannot be reached the Attorney General intends to bring action in court.

Background

National Emergency Medicine Association (NEMA) came to the attention of the Attorney General’s Charitable Trust Section through an audit of its charitable solicitation registration and IRS Form 990. The Charitable Trust Section questioned certain statements on the IRS Form 990, including that almost all NEMA’s reported charitable programs were “educational” and resulted from aggressive “joint cost” allocations of fundraising expenses to charitable programs. While joint cost allocations can be justified if certain conditions are met, past investigations have revealed misuse of these allocations as a way of inflating a charity’s reported activities.

The Attorney General’s investigation required NEMA to produce its solicitation materials, to document its charitable programs, and to justify its joint cost allocations. NEMA’s responses revealed numerous violations.

For years, NEMA has been mailing millions of sweepstakes fundraising mailers nationwide using the names National Heart Council, National Stroke Council, and National Alzheimer’s Council. The mailers generally inform the recipient that they are “approved” to win a major prize of $10,000 or $1 million, that the winner has been selected, and that they simply need to respond or they will miss their chance to win. The recipient is also asked to include a donation to help fight heart disease, stroke, or Alzheimer’s. Some mailings specify that donations will fund vital research or fund other grants. Using these tactics, NEMA has regularly raised more than $1 million per year, sending between 1 million and 2 million mailings per year.

Where Donations Actually Went

However, the money raised by NEMA does not actually go to grants or research to fight these diseases, instead it almost exclusively goes to sending additional sweepstakes and fundraising campaigns, which it categorizes as its “educational program.” But these so-called educational campaigns are really fundraisers sprinkled with a few generic educational slogans usually placed on the back of a sweepstakes announcement and under the small print legal disclosures.

Apart from these “educational” fundraising campaigns, NEMA does not have any programs to fight stroke, heart disease, or Alzheimer’s. NEMA’s responses to the Attorney General admit that their last equipment grant to combat stroke was in 2002, last stroke grant for education was in 1995 and their last research grant was in 1994. Despite this, NEMA told donors that it had recently “expanded” its stroke education grants and that funds raised would be used to “help fund vital research to find a cure” for Alzheimer’s disease.

Even though NEMA’s nearly exclusive activity has been sending millions of sweepstakes mailers they have not had a sweepstakes winner since 2013.

In addition, in the past three years, NEMA had just six grants totaling $13,965, two of which were $200 grants to send disabled children to the circus—a purpose not mentioned in any mailings. In 2015, NEMA raised nearly $1 million in donations, but reported just $650 in grants. They admitted, however, that this overstated their grants for the year, which were limited to one $200 grant for the circus.

Despite making minimal charitable grants and having almost no meaningful charitable programs (and few sweepstakes winners), during the years 2006 to 2016, NEMA’s President Kelly Herzog received total compensation and benefits of $1,786,826, an average of $162,438 per year.

Michigan a Leading State in Fighting Charitable Solicitation Fraud

Over the last two years, Attorney General Schuette’s Charitable Trust Section has ramped up its enforcement of Michigan’s law prohibiting deceptive charitable solicitations.

Below are some of Michigan’s recent charitable solicitations fraud actions:

1. Schuette Leads Multi-State to Shut Down Deceptive Veterans Charity
2. Florida Charity to Pay Over $100K to Breast Cancer Research, and is Banned From Soliciting in Michigan for Ten Years Due to Deceptive Fundraising
3. Utah Fundraiser to Pay $90K and Cease Michigan Solicitations Through 2020 for Fundraising Misrepresentations
4. Schuette: Deceptive Charity to Cease Operation after Misleading Donors
5. Schuette Obtains Fine Against Dearborn-based Fundraiser for Illegally Operating Clothing Donation Bins
6. Schuette: Texas-based Fundraiser Pays $75,000 for Operating Deceptively Labeled Clothing Bins
7. Schuette alleges deceptive solicitations violations against Florida-based veterans charity
8. Schuette Seeks Dissolution of Opus Bono Sacerdotii Charity for Lack of Governance, Diversion of Assets, and Deceptive Fundraising Practices

Charitable Solicitations Resources

Complaints regarding charitable solicitations may be filed through the Attorney General’s online complaint form, or by mailing the Charitable Trust Section at P.O. Box 30214, Lansing, MI 48909-7714, or by emailing the Charitable Trust Section.

To assist individuals in making wise decisions regarding which charitable donations to support, Attorney General Schuette established an online searchable database for charities. The Attorney General also publishes an annual professional fundraising charitable solicitation report, available at on the Attorney General website. Through these resources, users have access to information to aid them in determining which charities are worth supporting—and which are not. The Attorney General’s Charitable Trust Section is also available at 517-373-1152 to answer inquiries about a charity.

The American Lotus or Yellow Lotus is a rare blooming plant that grows in marshes. There are few spots in Michigan that boast having these beautiful flowers, but at Kensington Metropark, they are blooming in abundance.

Part of the Lily family of flowers, the American Lotus flowering plant has been on the endangered species list. The bright yellow blossom can reach a foot wide and the inner receptacle is a darker yellow. These flowers grow in the shallow waters of marshes and wetlands and have leaves that are similar to that of a lily pad. Interestingly, the petals of the flower actually repel water. They are rare in Michigan, but they end up spreading vastly in the few areas that do have them.

It is no surprise that the Yellow Lotus is thriving on Kent Lake in Kensington Metropark. The same area ends itself well to the waterfowl. Egrets, herons, sandhill cranes, and other birds already call this park in Milford, MI their home. They too enjoy the shallow march environments. In fact, they are an invasive species, in fact, and that is evident when you take a boat ride through Kent Lake to see the large area filled with these colorful floating flowers. They have been known to take over shallow waterways, preventing fishing and even making it difficult for boats to pass through.

The American Lotus is an edible plant. Natives used to cook the leaves and the seeds can either be eaten raw when they are young or they can be dried out and popped in the microwave, like popcorn. However, they are considered endangered and are, therefore, illegal to pick. It is the only aquatic wildflower in MI that is protected.  They tend to make their appearance and disappear over the years because the birds eat the seeds though. Also, as the season comes to end, the flower dies off, the stalk winds down into the base to form a bulb, and that attracts other animal life, like beavers, musrkrat, and deer.

While the American Lotus is an invasive wildflower, it is also a beautiful and protected aquatic plant. The peak time of year to see the American Lotus is late July through mid August and they are in full bloom at Kensington Metropark now.

LANSING – Michigan Attorney General Bill Schuette today warned Michigan residents to use caution in making charitable donations to Hurricane Florence recovery charities and when considering purchasing used cars in the days and weeks immediately following the storm hitting the eastern seaboard.

Schuette also encouraged those with family and friends in the disaster zone to review the After Disaster Consumer Alert for post-disaster information.

BUYING USED VEHICLES

Vehicles with flood damage can appear for sale on the internet or at car lots, without any mention or obvious signs of the damage. Unscrupulous sellers can quickly move cars, trucks and SUVs from flood zones, clean the outside surfaces of the vehicle and get them on the market before rust and corrosion sets in.

Water can damage vital parts of a car including airbag sensors, brakes, and electrical systems —and the damage may not show up right away. Weeks or months could pass before evidence of damage is known, putting the purchase past warranty and leaving a driver without a car.

“In Michigan we are lucky to not have to experience disaster caused by hurricanes and our thoughts are with those impacted,” said Schuette. “However, flood damaged vehicles could end up in our state, and while most auto retailers wouldn’t sell a water damaged vehicle, there are some vendors who would use this time to take advantage of the trust people have in those selling used vehicles.”

PROTECT YOURSELF BEFORE PURCHASING

Have the vehicle inspected by an independent, competent automotive technician who has no relation to the seller.  Since water damage can be hard to spot, paying an expert mechanic for an inspection is a good idea.

Check the vehicle history. Get the VIN (vehicle identification number) and trace its history through the National Motor Vehicle Title Information System database for a small fee. The National Motor Vehicle Information System is administered by the U.S. Department of Justice. Some consumers also choose to trace vehicle history using commercially available reports such as Experian’s Auto Check or CarFax. A vehicle history should tell you if the car has been in a flood region or issued a flood or salvage title. Remember though, these databases do not always have up-to-date or complete information about a vehicle (which is why the independent inspection is critical). You can also read the Consumer Alert “Beware of Buying a Flood-Damaged Vehicle” for more information.

Be on the lookout for vehicles with tell-tale signs of being submerged in water. For example:

• Musty or “over-perfumed” smell or signs of mold or mildew;
• Water stains, mud or residue in the trunk, under the carpet, floor mats, gas and brake pedals, and in hard-to-reach places difficult to clean;
• Title or registration histories indicating the car was in a flood area;
• Car hesitates, runs rough, or shows signs of premature rust or corrosion in places where you wouldn’t expect to see rust, such as the upper door hinges, trunk latches, and screws on the console.
• Always physically inspect the vehicle’s paper title before you buy. Check to see if it has been branded as “flood,” “junk,” “salvage,” “rebuilt” or another brand indicating the vehicle was severely damaged. But beware; a clean title does not prove the car is undamaged. The title may have been ‘laundered’ across state lines or altered to conceal the brand.

FILE A MOTOR VEHICLE COMPLAINT

Consumers should file complaints against a used motor vehicle dealer with the Secretary of State, Bureau of Information Security, Regulatory Monitoring Division online or by contacting the Bureau of Information Security, Regulatory Monitoring Division at 888-SOS-MICH (888-767-6424).

DONATING TO HURRICANE RECOVERY CHARITES

Many Michigan residents will consider donating to charities in the wake of the hurricane. The Attorney General’s office advises consumers to do research before donating and be aware of the organizations they are giving too.

Before you donate, ask the following questions:

• To whom are you donating? Are you sure of the asker’s identity? Could it be someone masquerading as someone else?
• How do you know that the money you donate will be spent appropriately? Public charities are subject to auditing requirements and other disclosure rules; you can also research them at various sites, including AGCharitySearch.
• Is your intended recipient similarly transparent and accountable?
• If donating to an individual: Is it someone that you know? Someone that you trust? Is the amount being raised reasonable or does it seem excessive? When giving to an individual, it can be difficult to know for sure that the recipient will use your donation as you intend it to be used.

Use your best judgment; if in doubt, don’t donate.

CHARITABLE SOLICITATIONS RESOURCES

Complaints regarding charitable solicitations may be filed through the Attorney General’s online complaint form, or by mailing the Charitable Trust Section at P.O. Box 30214, Lansing, MI 48909-7714, or by emailing the Charitable Trust Section.

To assist individuals in making wise decisions regarding which charitable donations to support, Attorney General Schuette established an online searchable database for charities. The Attorney General also publishes an annual professional fundraising charitable solicitation report, available on the Attorney General website. The Attorney General’s Charitable Trust Section is also available at 517-373-1152 to answer inquiries about a charity.

Consumers may contact the Attorney General’s Consumer Protection Division at:

CONSUMER PROTECTION DIVISION

P.O. Box 30213
Lansing, MI 48909
517-373-1140
Fax: 517-241-3771
Toll free: 877-765-8388
Online complaint form

 

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