Attorney General's News Release

November 5, 2004

Nixon files suit against Kirkwood business that sold computer programs to hair salons, then failed to deliver

St. Louis, Mo. —Attorney General Jay Nixon today filed suit against a Kirkwood business that promised to simplify bookkeeping and scheduling for hair salon owners, but instead made their lives more difficult. Nixon sued Omni Data Systems Inc. for numerous violations of Missouri's consumer protection laws. Nixon is seeking restitution of more than $8,000 for the salon owners.

"Salon owners expected to receive computer tools to improve their service," Nixon says. "Instead, they get unanswered messages and broken promises."

Advertising primarily through its Web site, Omni Data Systems sells computer hardware and software to hair salons and promises to ship all orders within 24 hours. The company promises salons that buy software a free 90-day membership in an extended support program that advertised as being available 24 hours a day, seven days a week. After the 90-day trial membership, a paid membership in the support program is "highly recommended," according to Omni Data Systems' Web site.

Eleven salon owners from across the country complained to the Attorney General they paid Omni Data Systems for products and did not receive them. The salons asked for refunds which they did not receive.

Seven other salon owners complained they paid for Omni Data Systems' products and did not receive them in a timely fashion. For at least one salon owner, Omni Data Systems' failure to deliver the products within the 24 hours promised caused problems for the opening of a new salon.

The lawsuit, filed in St. Louis County Circuit Court, states Omni Data Systems also failed to provide technical support to consumers, even those who were members of the extended support program. Nixon also says the company told one salon it could try the software on a temporary basis. The owner paid for the software, then realized she did not want to keep it. Omni Data Systems refused to refund her money.

Salon owners reported getting no reply when they called or e-mailed Omni Data Systems. Nixon's lawsuit states this unfair practice is a violation of Missouri's Merchandising Practices Act.

Nixon is asking the court to issue a permanent injunction barring Omni Data Systems from unlawful, unfair and deceptive acts. The Attorney General also is seeking restitution for the salon owners and a penalty of $1,000 per violation of the Missouri Merchandising Practices Act.

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