AG Nessel Secures Compliance with Companies over Troubling Business Practices

LANSING – Michigan Attorney General Dana Nessel has filed two Assurances of Voluntary Compliance and Discontinuance resolving an investigation into Baker’s Best Health (PDF) (Baker’s) and its twin company, American Master Products (PDF) (AMP). The investigation focused on potential violations of the Michigan Consumer Protection Act (MCPA) and Unsolicited Merchandise Act, stemming from consumer complaints alleging that both companies mailed misleading postcards to the homes of Michiganders, falsely promising them a “gift” and “risk-free” trial of a product.

The Attorney General had information suggesting that Baker’s sent postcards advertising a “gift” and a risk-free, 21-day trial of a health product. However, the postcard failed to disclose that accepting the gift required participation in the trial. The postcards used time-sensitive language suggesting recipients will “owe nothing.” After responding, the consumer received the gift along with a trial supply of a product marketed for age-related ailments and a billing invoice. The invoice revealed previously undisclosed sales terms, including charges for shipping and processing, automatic enrollment in Baker’s “Smart Ship Service,” which authorized automatic billing for refills, and additional fees for late payments or unsigned checks. The invoice also disclosed for the first time that consumers’ personal information may be shared with other businesses.

AMP, Baker’s twin company, allegedly engaged in nearly identical practices. AMP mailed postcards offering a “gift” and a risk-free, 21-day trial of a book, again failing to clearly disclose that accepting the gift required participation in the book preview. The same alleged misleading “owe nothing” language was also used, and consumers who responded received the gift, the trial book, and a billing invoice. The AMP invoice mirrored Baker’s, including charges for shipping and processing, automatic enrollment in AMP’s “Book Series,” which authorized automatic billing for additional books, and similar fees and personal data-sharing disclosures.

Under the terms of the Assurances, Baker’s and AMP are required to:

• Cease and desist from any unfair or deceptive business practices;
• Cancel all outstanding balances on “past due” or “overdue” consumer accounts nationwide;
• Honor requests from consumers to be placed on a “do not contact” list;
• Refrain from mailing or delivering any products unless expressly requested; and
• Address billing inquiries and issue full refunds when they lack records of informed consumer consent.

“Consumers should remember that if an offer sounds too good to be true, it probably is,” Nessel said. “Before accepting any offer, take the time to read the fine print and ask questions, especially when the deal seems overly generous. My office remains committed to protecting Michigan residents, especially our vulnerable seniors, from predatory and deceptive business practices.”

The Attorney General is re-issuing her consumer alert on reducing junk mail to help advise consumers of the steps they can take to decrease the number of unwanted solicitations. Attorney General Nessel also encourages consumers to review the Federal Trade Commission’s guidance on negative options subscriptions and what to do when receiving unordered products to protect themselves from deceptive practices. To file a complaint with the Attorney General or get additional information, contact: 

Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form

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