Attorney General's News Release

October 10, 2002

Nixon obtains court order for Lost Valley Lake to provide restitution to consumers misled by computer promotion

Jefferson City, Mo. — Consumers who attended sales presentations at Lost Valley Lake Resort in Gasconade County after responding to solicitations offering a free computer may be eligible to receive $50 reimbursement from the resort operator under a court judgment obtained by Attorney General Jay Nixon.

Nixon sued Mid America Resorts in May, stating that resort staff failed to fully inform many of those who responded to the free computer promotion by scheduling a tour of the resort of the fact that the consumers would be required to sign an Internet access contract at a cost of more than $1,000 in order to receive the computer. The Attorney General obtained a temporary restraining order against the company on May 22.

"Some consumers who took the time to travel to Lost Valley Lake Resort because they believed they would receive a free computer after listening to a sales presentation might have declined the solicitation if they had been fully aware of the $1,000 string attached," Nixon said.

Under the order signed Oct. 4 by Gasconade County Circuit Judge Gael D. Wood, Mid America Resorts will be required to send a questionnaire to all consumers who responded to postcards mailed between November 2001 and May 2002. Consumers will be asked if and when they were informed of the Internet contract requirement. Mid America Resorts will send a $50 check to those responding to the questionnaire who indicate they were not informed of the requirement prior to their arrival at the resort for the their scheduled tour.

In addition to the consumer restitution, the judgment also orders Mid America and its employees not to omit and to conspicuously disclose all conditions and restrictions in any advertising of incentives offered to consumers for visiting Lost Valley Lake Resort. Mid America Resorts also will be required to pay $3,340 to reimburse the Attorney General's Office for the costs of investigating and prosecuting the lawsuit and for consumer education purposes.

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