Colorado Attorney General John Suthers announced the state has reached a settlement with the Oklahoma-based tanning chain, At The Beach. The settlement resolves allegations the company misled consumers about its tanning contracts. The agreement requires At The Beach to pay an estimated $350,000 in consumer restitution, fines and attorney fees and requires that At The Beach halt its deceptive sales practices and record all of its future sales.
At The Beach allowed its employees to misrepresent that consumers could “cancel their contract at any time,” according to the state’s complaint. Former employees and consumers told investigators that the company failed to disclose that cancellation would require payment of half of the remaining cost of the contract. Consumers also said they first learned of the cancellation fee when they attempted to cancel. The Office of the Attorney General estimates that more than $100,000 will be refunded to more than 300 past At The Beach customers. The company also paid an additional $75,000 to the state that was used to reimburse consumers.
The settlement also will require At The Beach to:
- Install recording equipment in all of its stores and maintain an audio copy of every sale;
- Update its contracts to require initialing from consumers throughout the document; and,
- Simplify the documentation required to cancel a contract when moving outside the company’s service areas.
If you believe you may have been affected by At The Beach, you may file a complaint with our office at www.coloradoattorneygeneral.gov/complaint