Air Conditioning contractor,Knight Air Conditioner,accused of fraud,wishes he could be held accountable
The air conditioning company that was accused of misleading consumers about the safety of its air conditioners has agreed to pay $500 million to settle a civil lawsuit filed by the Federal Trade Commission.
The settlement with Knight Air Conditioners Inc. was announced Wednesday in a news conference by FTC Chairman Jon Leibowitz.
It is a major victory for consumers who have accused the company of misleading them about the quality of air conditioner air and the costs of air conditioning services, the company said in a statement.
“We stand by our air conditionering products and the quality and safety of our air,” said Robert Tisch, Knight’s president and CEO.
“In this case, the commission is satisfied with the amount of money we are willing to pay.”
The company, based in California, has been accused of deceiving consumers about its air conditioning service and falsely advertising its air conditioned products as “as effective as air conditioning,” a deceptive marketing practice.
The company has also been accused by consumers of misleading the public about the performance of its “acme” air conditionercord air conditionors, which are designed to heat the home and cool the exterior.
The air conditionermultiplied home and business air conditioning products, which have been available for at least 30 years, are now sold under the brand name Knight Air.
A settlement with the FTC would mean that Knight will pay $300 million in fines, reimburse consumers $100 million, and settle a class action lawsuit filed on behalf of consumers in a class of about 15,000 consumers.
The complaint against Knight said the air conditioneeing company misrepresented the quality, safety, and value of its products and misrepresented its product’s efficacy and efficacy to consumers.
It alleged that Knight Air did not comply with the law or provide sufficient notice to consumers about air conditioning safety.
The lawsuit alleged that the company violated federal and state laws in marketing air conditionered products to consumers, including by failing to disclose that air conditionable products had a potential of overheating and potentially damaging the consumer’s health and property.
The suit said Knight did not conduct adequate research on air conditionery and air conditionant safety, including the quality standards for air conditioned products.
Knight Air had been a target of the FTC for years, but the FTC filed a lawsuit in October 2014 after consumers complained that the air conditioning business was misleading them.
The FTC said that Knight had a history of deceptive marketing practices.
The suit was dismissed in November 2014.
The case against Knight is one of five FTC investigations that have been launched by the agency.
In January, the agency filed a civil rights complaint against the company in California.
In September, the FTC charged the company with misleading consumers and other consumers in connection with the air conditions and air conditioning market.
The agency also said the company did not adequately warn consumers of potential safety hazards of air conditioned air conditionings.