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Video mail order company owners Abraham Cohen and Elliott Mavorah accused of making unauthorized credit card charges

Comm-Services LLC, a Monmouth County-based DVD mail-order company, and its owner and manager, have agreed under a state settlement to pay at least $61,000 in penalties and fees and to enter into arbitration with 78 New Jersey consumers who complained of unauthorized credit card charges.

If the company along with its owner, Abraham S. Cohen, formerly of Long Branch, and manager, Elliott Mavorah of Long Branch, fail to meet the terms of a consent order over the next five years, that will have to pay another $125,000 in penalties and investigative costs and attorneys' fees.

Cohen, Mavorah and Comm-Services paid an initial $11,000 installment to the state Division of Consumer Affairs on Tuesday, and will pay $50,000 on or before May 31, Consumer Affairs officials announced Monday.

"The Division of Consumer Affairs fought and won a clear victory for New Jersey's consumers," state Attorney General Paula T. Dow said. "With this order, the state holds a $125,000 penalty over the heads of Comm-Service and its owner and manager, should they fail to honor binding arbitration with consumers, or otherwise fail to comply with the settlement terms."

Also under the consent order, the Division of Consumer Affairs will refer any new consumer complaints to Comm-Services for resolution. If the company disputes a new complaint or requested relief, the matter will be referred to the division's Alternative Dispute Resolution Unit for binding arbitration.

"New Jersey will not let businesses get away with abusing consumers through unauthorized credit card charges, deceptive ads, or confusing and unspecified terms and conditions," Acting Consumer Affairs Director Thomas R. Calcagni said. "This order will provide just relief to the consumers who were affected, and will ensure that Comm-Services and its owners and operators take seriously their legal obligations under the Consumer Fraud Act."

Consumer Affairs alleged that Comm-Services, through the conduct of Cohen and Mavorah, violated the state Consumer Fraud Act and Advertising Regulations by placing unauthorized charges on consumers' credit cards after mailing DVDs the consumers did not order - with such anti-classic movies as "Rescue from Gilligan's Island," "King of the Cowboys," "At War With the Army," and "I Wonder Who's Killing Her Now?"

Comm-Services, Cohen, and Mavorah denied committing any violations of the law advertising regulations. They agreed in the consent order that they will not charge consumers for merchandise they did not order; will not charge consumers' credit cards without the consumers' express authorization; will disclose in advertisements the complete cost of merchandise including shipping and handling; and will clearly and conspicuously set forth all disclaimers that apply to the sale of merchandise.

The Monmouth County Office of Consumer Affairs assisted in the investigation.

— TOM HESTER SR., NEWJERSEYNEWSROOM.COM