SEATTLE, Wash. — Many small business owners in Washington have been targeted by a series of fraudulent schemes orchestrated by three brothers out of Michigan. This has led to a new consumer protection lawsuit filed by Attorney General Bob Ferguson.
The brothers, associated with Labor Law Poster Service, have persistently engaged in deceptive solicitations, falsely posing as mandatory bills from government agencies.
Despite a prior investigation in 2008 and a 2016 court ruling that resulted in over $1.2 million in penalties, the brothers, Joseph, Thomas, and Steven Fata, continued their illegal activities.
The latest lawsuit accuses the Labor Law Poster Service of violating the Consumer Protection Act more than 300,000 times between 2016 and 2022.
The deceptive letters, sent to businesses nationwide, targeted small business owners with threats of legal consequences for not immediately purchasing the advertised product — a “Complete State & Federal Posting Requirement Set” priced at $79.50 or more.
The lawsuit seeks full restitution for affected businesses, civil penalties for each deceptive letter and additional penalties for violating prior agreements.
This legal action is part of the Small Business Protection Initiative, which aims to safeguard Washington businesses from scams.
Other states have also pursued legal action against the Labor Law Poster Service, emphasizing the widespread impact of their deceptive tactics. Attorney General Ferguson is striving to make the brothers return every penny to the small business owners they have harmed and seeks significant penalties to halt their illegal conduct.
For more information and to report similar scams, visit the Attorney General’s Office website.
