Attorney General's News Release

July 27, 2006

Consumers in Springfield, Joplin areas to receive $31,300 restitution from water treatment company sued by Nixon

Springfield, Mo. — Eleven consumers from the Springfield and Joplin areas will receive a total of $31,300 in restitution from the owners of Hague Quality Water of the Ozarks under a consent judgment obtained by Attorney General Jay Nixon. The order signed by Greene County Circuit Judge Dan Conklin comes after Nixon sued the company in November 2004 for repeatedly violating Missouri's consumer protection laws in the sale of its water systems.

The lawsuit alleged that representatives of Hague falsely promised consumers that the water treatment system they were marketing would improve their family's health, save water and give them other benefits - misrepresentations that violate Missouri law. Defendants in the lawsuit were K&H Mitchell Inc., which does business as Hague Quality Water of the Ozarks; and its owners Heather Mitchell, of Republic, and Keith Mitchell, of Springfield. Hague Quality Water has offices in Republic and Joplin, and previously had an office in Columbia.

“We're pleased that consumers who raised complaints against this company and its dubious promises will be reimbursed,” Nixon said. “My office is always keeping an eye out for this kind of deception, and we're ready to hold schemers accountable.”

In addition to the restitution, the defendants will pay $1,000 to the state for the costs of the investigation and prosecution. Nixon also obtained a permanent injunction against defendant Heather Mitchell in August 2005 barring her from ever operating, owning or managing a business of any sort in Missouri.

The lawsuit stated that between August 2002 and November 2004, Hague Quality Water of the Ozarks advertised, offered and sold water treatment systems to Missouri consumers. Hague sales representatives would go to consumers' homes and give presentations that usually lasted more than two hours.

During the presentation, they would “test” the consumers' tap water for various conditions including “hardness” and the presence of chlorine. Hague's sales representatives then would tell consumers their tap water was hard and contained chemicals and substances that have been proven hazardous to their health. The consumers were falsely told the Hague water treatment system, which cost several thousand dollars, would alleviate these problems.

Another of Hague's deceptive practices involved financing, Nixon said. Hague sales representatives routinely would tell consumers that they would help them obtain financing to pay for the water treatment system, and if consumers would make payments of $99 per month the system would be paid for in four or five years. The lawsuit said that some customers ended up getting financing at an interest rate which did not allow them to pay off the system in four or five years, as promised. They would not learn that until they received their first bill.

According to the lawsuit, Hague also failed to comply with Missouri's law that gives buyers a three-day right of rescission. This law states that consumers must be told they have three days to terminate their contract after an in-home sales presentation. Many Hague customers were not told about this. Others were told they had until installation to terminate the transaction. One consumer was told Hague offered a 60-day trial period.

Consumers who tried to cancel the contract based on the time frame specified by Hague employees were denied cancellation. They were told they were only entitled to a three-day right of rescission, regardless of what was said during the sales presentation.

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