Arizona Attorney General Terry Goddard 2010 Annual Report

Office Highlights (continued)
believe that its $10-a-month
service was a “proven solution”
that would protect against all
forms of identity theft, which
was not true. LifeLock agreed
to pay $11 million in restitution
to consumers and $1 million to
cover the costs of the states’
investigation.
• A $175,000 settlement with
Amir & Sanchez Nutraceuticals
of Tucson over deceptive
marketing of various
nutritional supplements. The
company used the Internet
to advertise “14-day riskfree”
trial offers of various
supplements, purportedly for
only a nominal cost for shipping
and handling. But the offers
did not adequately disclose
material terms and conditions
that rendered the trial offers
far from “risk-free” and led
to significant, unauthorized
charges to consumers. The
company also falsely informed
consumers they could cancel
by simply calling a toll-free
phone number, when in fact
consumers often could not get
through to a representative or
were disconnected.
• A $100,000 settlement
was reached with Avondale
Automotive over deceptive
advertising and sales practices.
The company was accused
of failing to sell specific
vehicles at advertised prices,
advertising vehicles that were
not available for sale, and
using the Manufacturer’s
Suggested Retail Price (MSRP)
as a reference price for used
vehicles. Violations were
alleged from 2005 to 2009.
• A $95,000 settlement was
reached with Steve Coury
dealerships in Cottonwood and
Camp Verde over deceptive
Attorney General Goddard announces Operation Vaqueros, which dismantled a Mexican drug-smuggling organization, at a Tucson press conference.
advertising. More specifically,
the dealerships were accused
of using contradictory and confusing
disclaimers in footnotes
buried at the bottom of advertisements,
using misleading
headlines that applied to only
one vehicle and falsely claiming
guaranteed credit approval in
advertisements. Violations were
alleged from 2006 to 2008.
Pair of Drug-Trafficking
Organizations Dismantled
The Office stepped up the
fight against border crime and
played a key role in breaking
up two major drug-smuggling
organizations. In both cases, our
Office partnered with federal,
state and local law enforcement
agencies.
• Operation Vaqueros, a
36-month investigation
brought down a Mexican
drug-smuggling organization
that moved at least 40,000
pounds of marijuana through
southern Arizona, primarily in
Cochise County. Thirty-nine
people were indicted. The
organization used advanced
counter-surveillance equipment
and ramp trucks to overcome
fences and other border
barriers. The name “Vaqueros”
refers to the cowboy attire
worn by members of the group.
Arizona Attorney General Terry Goddard • 2010 Annual Report
8