Electric Mobility Settles Misrepresentation Charges

Rascal Scooter sales practices challenged by Washington state

January 4, 2008

Rascal Scooters • Electric Mobility Settles Misrepresentation Charges • Rascals Come In Many Forms • Company Pays $225,00 to NJ --- • Rascal Complaints • Rascal Objects to Use of Word "Fined" • David Complains • The Company Responds • A Follow-Up from David • Rascals' Defenders

A New Jersey company accused of making illegal misrepresentations while selling motorized wheelchairs to consumers in Washington state has agreed to reform its sales practices.

Electric Mobility Corporation also agreed to refrain from future violations and provide consumers with a 14-day cancellation period for any motorized wheelchair under a settlement with the Washington Attorney General’s Office.

The Washington state Consumer Protection Division accused Electric Mobility, which manufactures Rascal scooters, of unlawful trade practices, including misrepresenting the quality and characteristics of its products and consumers’ ability to be reimbursed by Medicare or Medicaid.

The Sewell, N.J., company also was accused of using coercive sales tactics, misrepresenting its refund policies and failing to repair or replace defective merchandise. The company paid $225,000 to settle similar charges in New Jersey in 2002.

Electric Mobility denied the Washington allegations but agreed to enter into an Assurance of Discontinuance. The company will pay more than $15,400 in attorneys’ fees and legal costs.

“The agreement helps ensure that consumers have all the important information they require to determine whether to purchase one of Electric Mobility’s wheelchairs,” said Assistant Attorney General Jim Sugarman.

“If a consumer finds that the wheelchair is not suited to their needs, they may return the chair at no charge within two weeks. If the company fails to comply with required disclosures or violates any consumer protection law, the state can seek substantial civil penalties,” he said.

Under the agreement, Electric Mobility promised to make certain disclosures in its sales documents. It must state whether and how Medicare or Medicaid may pay a portion of the wheelchair’s cost, disclose whether the chair is new or refurbished and provide a description of any warranty.

All disclosures must be made clearly and conspicuously before the consumer is asked to sign a sales agreement. The company also agreed to assist each consumer in reading and understanding its sales agreements.

The company also will include certain disclosures on its Web site and in advertisements, contest forms and other promotions. Consumers must be informed that by entering an Electric Mobility contest they agree to receive telemarketing calls from Electric Mobility unless they specifically opt out of such calls.

Electric Mobility must provide an opportunity for consumers to evaluate products in their home prior to purchase, including determining whether the consumer will be able to maneuver the chair in and out of their residence (unless this evaluation is for some reason impossible).

If Electric Mobility arranges financing it must reveal all the terms of the loan at the time of the sale and whether the loan is provided by Electric Mobility or another lender.

Finally, the company must provide the Attorney General’s Office with copies of any complaints it receives from Washington residents during the coming year.

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