BISMARCK, ND –Attorney General Wayne Stenehjem issued a Cease & Desist Order against Crystal Clark and her business, Young People Working LLC., for violations of North Dakota’s home solicitations sales law, consumer fraud laws and Do Not Call laws. Clark, who lists addresses in Arizona, Delaware and Colorado, used groups of young people to sell magazines door-to-door. Neither the business nor any of the individuals who conducted the sales hold the required licenses.
“Clark took advantage of well-meaning North Dakota consumers by using young people to knock on doors and sell overpriced magazine subscriptions. People who thought they were helping to support some charitable enterprise for youth were, in fact, lining Ms. Clark’s own pockets,” said Stenehjem.
The Attorney General’s consumer protection division contacted Clark after receiving information from the Griggs County Sheriff’s office, which had prevented the group from continuing its illegal sales activities there. Investigators determined that Clark had not obtained a transient merchant license and the sales contracts did not include the required “right to cancel” notices. The investigators offered Clark an opportunity to voluntarily comply with the licensing requirements and to issue refunds to consumers. Clark rebuffed the investigator’s efforts and later failed to respond to a formal request for information.
Parrell Grossman, director of the Consumer Protection division, reminded consumers that they have a three-day “right to cancel” that applies to purchases over $25 made away from a permanent place of business, such as a home party, door-to-door salesman, or services sold over the telephone.
“This right to cancel must be included in the sales contract or receipt and also explained to the consumer, said Grossman. He explained that if a consumer cancels the transaction within the cancellation period, they either cannot be charged or the purchase price must be fully refunded. Consumers aged 65 or older have up to 15 days to cancel a purchase more than $50.