|FOR IMMEDIATE RELEASE:
July 25, 2000
FOR FURTHER INFORMATION
Jennifer Salvato, Genene Morris (973) 504-6327
New Jersey's Allegations
NEWARK - United
Micro Systems, Inc., ("UMS") has settled the State's allegations
that it defrauded consumers by selling a bogus "hair replacement
system" by agreeing to pay nearly $300,000 in consumer restitution
and costs to the State, Attorney General John J. Farmer, Jr.,
and New Jersey Division of Consumer Affairs Director Mark
S. Herr announced today.
any wrongdoing, UMS has also agreed to make changes in its
sales and advertising practices.
"We work hard to
enforce the laws of the State and to take action against those
who fail to comply with these laws," Farmer said. "We are
satisfied with the outcome of this case because it emphasizes
our commitment to fighting fraud and preserving consumers'
"Under this agreement,
UMS can't make its fraudulent claims anymore," Herr said.
In January 1999,
a Camden County Superior Court judge partially froze UMS'
assets after New Jersey accused the Voorhees company of repeatedly
making false and misleading claims in Internet advertisements
and in national magazines about the "Dermal Retention" system.
The complaint also alleged UMS charged victims across the
country and in Canada anywhere from $2,000 to $8,000 to undergo
an alleged "permanent" hair replacement process that involved
gluing toupees to clients' scalps. The company is located
at Promenade North, Suite 3018, Main St., Voorhees.
The suit also named
as defendants UMS' former owner, Karen Levine, Cherry Hill;
its current owner and president, William Fillmyer, Delran;
Fillmyer's assistant, Robert Calderone, Delran; Donna Anthony,
an employee of UMS responsible for carrying out the Dermal
Retention procedure; Ann Scaricamazza, UMS' customer service
manager; and Robert Pease, office manager and sales consultant.
As part of the
agreement, UMS will, among other things:
- pay $215,836.20
in consumer restitution and $80,000 to cover the administrative,
legal and investigative costs incurred by Consumer Affairs;
- refrain from
using "before and after" photographs and testimonials of
purported clients unless they are accurate and actually
do involve satisfied clients or disclose if models are used;
- remove all references
to full or complete warranty in any advertisement unless
such warranty is available;
- remove the terms
"permanency," "FDA approved," and like terms from all its
- require all
sales consultants to follow a truthful sales script when
discussing the UMS hair replacement system to potential
- create and retain
a file for each client and potential client for a minimum
of three years from the date of the consumer's initial inquiry;
- maintain a list
of at least five current clients, who are not employees
or agents of the company, whom potential clients may contact
as references; and
- allow clients
to be accompanied by one other person during the application
General David Puteska of the Division of Law handled this
case for the State.