Attorney General's News Release

August 14, 2001

Nixon sues Kansas business for misrepresentations, high pressure in selling water treatment systems

Jefferson City, Mo. — Attorney General Jay Nixon today sued an Olathe, Kan., business that Nixon said is using high-pressure sales tactics and numerous misrepresentations in selling its water treatment systems to Missouri consumers.

In the lawsuit filed in Buchanan County Circuit Court, Nixon said Hague Quality Water of Kansas City Inc. has engaged in a pattern of deception that begins with how the business solicits potential customers, continues through misrepresentations during the sales presentation, and culminates with the omission of information that results in customers paying thousands of dollars extra in finance charges.

"Hague Quality Water is basing its business on a foundation of falsehoods to consumers," Nixon said. "We're asking the court to stop their misrepresentations and order them to pay restitution to customers and penalties to the state."

Nixon said Hague Quality Water obtained potential customer names by placing entry boxes advertising a contest to win a jet ski or a car in various public places. Hague did not disclose on the entry form or box that entrants would be contacted to set up a sales presentation in their homes.

When potential customers were contacted about the sales presentation, they were promised free vacations to Branson as incentives. Nixon said that not only were the trips not free, the conditions and terms imposed on the customers made it impractical or impossible to take the trips. Once Hague employees were inside the homes for the sales presentations, Nixon said, the deceptions continued with a "test" of the customers' tap water.

"Every potential customer was told their tap water was hard and that it contained hazardous chemicals and substances," Nixon said. "Not surprisingly, the customers were told that a water treatment system from Hague would alleviate the hardness and remove the harmful chemicals, and that the system would pay for itself in only a few years because of the savings in soap, detergent and energy. Very little of this was true."

Nixon said that the customers who purchased a water treatment system were told that if they made a certain monthly payment, the system would be paid for in four or five years. What Hague employees did not tell those customers was that if they paid only that monthly payment, substantial finance charges would accrue each month, causing the total amount paid for the system to be thousands of dollars more than the total purchase price represented by Hague.

"This really was insult to injury — paying thousands more than you thought for a system that many consumers say doesn't work," Nixon said.

Nixon is asking the court to issue injunctions against Hague Quality Water to prevent the business from any additional violations of Missouri's consumer protection laws. The Attorney General also is seeking restitution for Missouri customers, as well as a civil penalty of $1,000 for each violation.

Missourians who have complaints about this company or about the practices of any other business can call the Attorney General's Consumer Protection Hotline at 1-800-392-8222 or download a complaint form.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818