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Lawsuit Alleges Medical Discount Card Companies Misrepresented Availability And Amount of Discounts for Its Members
Madison - The Wisconsin Department of Justice has settled a consumer protection lawsuit against two Tennessee-based Medical Discount Card Companies - MedLife Plus, Inc., and Full Access Medical, LLC. The lawsuit alleged that these companies and their operating officers violated numerous Wisconsin consumer laws.
In its lawsuit, the State alleged that MedLife Plus and Full Access have issued medical discount cards to over a thousand Wisconsin customers, charging Wisconsin consumers sometimes as much as $49.00 a month for the card, in addition to a registration fee. The cards were purported to provide medical discounts of up to "80%" from local medical providers. However, it is alleged that few, if any, of the local medical providers listed on the companies' websites or membership materials provided discounts, and even where discounts were available, MedLife Plus and Full Access grossly overstated the amount of the discount.
"Companies may not misrepresent the nature and quality of their products or services in order to make a sale," said Van Hollen. "Consumers expect to get what they've been told they are paying for."
Through the settlement the State will obtain $45,000 in forfeitures, assessments, restitution fees and costs. In addition, MedLife Plus and Full Access have agreed to stop selling membership to their medical discount card plans in the State of Wisconsin for a period of five years.
"DOJ will continue to work with the Department of Agriculture, Trade and Consumer Protection to enforce the law by investigating, and when appropriate, prosecuting cases in which misrepresentations are made to induce sales." said Van Hollen.
The judgment was signed by Dane County Circuit Court Judge Richard G. Niess. The State was represented by Assistant Attorney General Lara Sutherlin. The State Department of Agriculture, Trade and Consumer Protection assisted in the investigation of this case.