Colorado Company Pays After Misleading About PPE
Earlier this week, Colorado Attorney General Phil Weiser reached a settlement with Nationwide Medical Supply Inc. after the company advertised misleading claims and overcharged consumers for their PPE products last year.
The Denver-based company falsely advertised that an N95 respirator and KN95 mask were approved by the FDA/CE and National Institute of Occupational Safety and Health (NIOSH) despite having received no such approval from these groups. Their masks also performed 15 percent lower than their advertised level of removal filtration when tested by the State.
Additionally, Nationwide Medical Supply Inc. sold third-party products at unreasonably marked-up prices. Last spring, the company sold KN95 masks at a mark-up of over 250 percent. Furthermore, Nationwide owner Jon C. Lewis offered his salespeople commission based on their ability to sell masks at higher prices to medical or government workers.
Nationwide’s actions violated the Colorado Consumer Protection Act—which accounts for deceptive trade practices—and a recent bill that prohibits price gorging during times of public disaster or emergency.
Nationwide attorney Alan Schindler denies the allegations. In a written statement, Schindler claims that, “Even if true, the allegations establish only that Nationwide reproduced information provided to them and did not intentionally mislead the public.”
Despite this denial, the company has agreed to pay the state of Colorado $70,000 after being prosecuted by Attorney General Weiser. The company intends to improve its policies and procedures in hopes of once again becoming “a trusted source of crucial PPE.”
“During a public health emergency, Coloradans and Colorado businesses need to be able to trust that the potentially life-saving products they are purchasing are as advertised,” says Attorney General Weiser in a written news release on Monday. “We must hold irresponsible businesses accountable for deceptive practices, especially those that have the potential to cause direct harm to consumers.”
Photo Courtesy of Ashkan Forouzani
