Penguin Windows settles in false-claims suit

  • Amy Rolph Herald Writer
  • Tuesday, March 2, 2010 2:17pm
  • Business

Penguin Windows agreed to a wrist-slap from the Washington Attorney General’s office this week, agreeing to stick to the facts when advertising and to allow customers to cancel orders after in-home presentations.

The Mukilteo-based window-replacement company landed in hot water with the state’s legal agency after allegations that Penguin misrepresented how much its windows would save in energy costs. The agency also accused the company of misleading customers into thinking at-home visits were something other than sales calls.

According to the complaint filed in King County Superior Court, Penguin advertised that its windows would save homeowners a minimum of 40 percent on their monthly heating and cooling bills.

The suit went on to allege that Penguin asked customers to sign a letter agreeing not to cancel an order, violating a law that gives consumers three business days to cancel after an in-home sales pitch.

“Our case alleged that Penguin’s claims just didn’t fly,” said Assistant Attorney General Jack Zurlini in a statement. “Our agreement sets out in black and white the acceptable marketing practices in the window sales industry and those bad practices that will put companies on thin ice.”

Penguin denied wrongdoing but agreed to restrict marketing efforts.

In a statement released Tuesday, Penguin Director of Operations Vaughn McCourt said: “While we don’t agree with all of the allegations made by the Attorney General we do intend to make changes to our marketing and sales process to ensure that we are in full compliance with the consent decree and the law. We think these changes will make Penguin Windows a stronger company and set new standards of professionalism for the home improvement industry.”

The Attorney General’s office suspended $25,000 in penalties, but Penguin will pay $95,000 in legal costs.

According to the Attorney General’s office, Penguin also operates as Statewide Energy Systems, Statewide Home Improvement, Statewide Vinyl, Statewide Windows and Statewide Window and Siding.

Read Amy Rolph’s small-business blog at www.heraldnet.com/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com.

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