TOSHIBA AMERICA BUSINESS SOLUTIONS INC. WINS STIPULATED JUDGMENT AGAINST IDC SERVCO FOR MISREPRESENTATION AS TOSHIBA AFFILIATE
Toshiba Launches New Office Supply Telemarketing Fraud Protection Program
IRVINE , California ( Aug 21, 2007 ) :
In a significant legal victory protecting the business interests of authorized Toshiba dealers and their customers against misrepresentations and fraudulent business practices, Toshiba America Business Solutions Inc. (TABS) today announced that the United States District Court ordered a permanent injunction against IDC SERVCO, Mytel International Inc., and parent company, G.M.N. Financial Services Inc., barring the group from misleading customers by representing the company as an authorized dealer of Toshiba office product supplies. The permanent injunction further prohibits the companies from falsely designating any of their products as Toshiba’s or infringing on any Toshiba-held copyright. This precedent is the first legal success in TABS’ aggressive initiative to protect the Toshiba brand, Toshiba dealers and their end customers from office supply telemarketing scams.
Following the U.S. District Court’s order, TABS unveiled its new Office Supply Telemarketing Fraud Protection Program, an educational section on the TABS website that empowers customers with tools and information to protect businesses from telemarketing schemes.
More information on the TABS Office Supply Telemarketing Fraud Protection Program can be found at: http://www.copiers.toshiba.com/.
“Toshiba values our customers and dealer partners too highly to allow companies such as IDC SERVCO to misrepresent themselves and make customers believe that they are part of the Toshiba Corporation,” said Tom Walter, director of Aftermarket Sales, Marketing & Operations, TABS. “TABS will continue to devote the resources necessary to aggressively protect our valued customers from opportunists that attempt similar misrepresentations.”
TABS credits the success of the litigation to working closely with the Federal Trade Commission, the Imaging Supply Coalition, TBS subsidiaries and Toshiba’s authorized independent dealers. With known cases stemming back as far as 1987, office supply telemarketing scams have resulted in businesses reporting an estimated $200 million a year in operation losses in North America. A typical scenario involves a telemarketer identifying themselves as an authorized dealer of copier supplies, requesting information on office copier fleets or confirming a fictitious prior purchase. The telemarketing company then proceeds to ship unordered supplies with invoices demanding payment, sometimes at 10 times over the MSRP. The fraud preys on uninformed employees or unsuspecting customers through the use of trusted company brands, such as Toshiba.
TABS’ aggressive pursuit of legal action against IDC SERVCO stems from a 1998 consent decree signed by the company’s subsidiary, Mytel International Inc., agreeing not to make any misrepresentations in the sale of photocopier or office supplies, including statements that Mytel, or any sales company contracted by Mytel, are affiliated with the end customers’ regular supplier, servicer or equipment manufacturer. In mid-2005, TABS began to receive reports that the Culver City-based company had resumed contacting end customers, posing as an authorized Toshiba supplies dealer. TABS filed suit against Mytel
International Inc., IDC SERVCO, and parent company G.M.N. Financial Services, Inc., which resulted in the August 2, 2007 U.S. District Court order granting a permanent injunction against the defendants.
About Toshiba America Business Solutions Inc.
Toshiba America Business Solutions Inc. (TABS) manages product planning, marketing, sales, service support and distribution of copiers, facsimiles, multifunction printing products, network controllers, and toner products throughout theUnited States, Mexico, Brazil, Latin America, and the Caribbean. Headquartered in Irvine, Calif., TABS has four divisions: the Electronic Imaging Division; the Toner Products Division; the Document Solutions Engineering Division; and TOPAC U.S.A., Inc., dba Toshiba Business Solutions (TBS), a wholly-owned subsidiary corporation of TABS, that operates a network of wholly owned office equipment dealers throughout the United States.
Named the most favored manufacturer eight times by the Business Technology Association (BTA), Toshiba’s entire product line, customer support and marketing distribution policies are markers for the industry. Among the many other awards garnered in recent years, Toshiba was named the “Manufacturer of the Year” seven times by Marketing Research Consultants (MRC), and has twice been named to the CIO 100 for being among the top 100 “bold” (2005) and “agile” (2004) companies in the world.
TABS is an independent operating company of Toshiba Corporation, the seventh largest electronics/electrical equipment company and the world's 91st largest company in terms of sales. Ranked by Fortune magazine as the 10th Most Admired Electronics Company in the World, Toshiba Corporation is a world leader in high technology products
with more than 300 major subsidiaries and affiliates worldwide. Fiscal year revenue in 2006 was approximately $60 billion.
For more information on Toshiba copier, facsimile, multifunction printing products, network controllers or toner products, or for a dealer in your area, call (800)-GO-TOSHIBA or visit the TABS Web site at www.copiers.toshiba.com.