Vermont Business Magazine Vermont Attorney General TJ Donovan announced a settlement of consumer protection claims against MD Cosmetics Medical Spa and its owner, Erin Jewell. The settlement resolves the Attorney General’s claim that MD Cosmetics engaged in unfair and deceptive conduct by closing in September 2017 without warning and failing to refund its customers’ outstanding gift certificates and unfulfilled pre-paid services.
In the settlement, MD Cosmetics and Jewell acknowledge that $118,145 in restitution is owed to Vermont consumers, and the Attorney General assessed a $58,000 penalty for their conduct. Due to Jewell’s bankruptcy, she will only be required to make payments towards these amounts if her financial situation improves in the next five years. Jewell will also be banned from owning, operating, or managing a similar business in Vermont for five years.
Given Jewell’s inability to pay, this settlement will not result in any immediate payment to Vermont consumers. In each of the next five years, Jewell will be required to provide evidence of her income and assets, and if either exceed certain thresholds, she may be required to make payments towards the amounts owed. If any payments are made under the agreement, the Attorney General’s Office will first seek to distribute them to consumers owed restitution before applying any payments to the penalty amount owed.
Any consumer who has already filed a complaint with the Consumer Assistance Program in which they stated the amount of money they were owed and provided contact information will be contacted in the event of a future payment. Any Vermonters who were owed money by MD Cosmetics who have not yet filed a complaint should contact the Attorney General’s Consumer Assistance Program in the next 30 days to ensure that they may receive a future payment by calling 1-800-649-2424 or visiting http://cap.vermont.gov.
Source: AG Jan 26, 2018