PHOENIX (CN) - Arizona seeks stiff penalties for a Chandler-based moving company that added more than 40 percent to its advertised rates with a welter of "fees." Attorney General Terry Goddard seeks $10,000 per violation from Allstar Moving and Storage, Mohamed Elsayed and Amru Abdalla.
Allstar sent direct mailers advertising "flat hourly rates for its moving services," the state claims in Maricopa County Court.
But it tacked on charges for "fuel that ranged from 15 percent to 20 percent of the base moving charge; an additional $5 to $25 for truck cleaning; a 7.8 percent 'sales tax' on the base moving charge, and a 12.8 percent surcharge on the base moving charge that Allstar referred to as an 'SPE tax,'" Goddard says.
Allstar also lied about its insurance, which limited customers' reimbursement for damaged or destroyed property to 60 cents a pound unless they bought additional insurance through Allstar for $229, Goddard says.
Goddard seeks an injunction, reimbursement and $10,000 fines for each violation of the Arizona Consumer Fraud Act.
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