Pittsburgh Plumbing Co. To Pay For Misleading Customers, Using Scare Tactics

PITTSBURGH, PA — One of the region's largest plumbing, heating and electrical companies pressured people into unnecessary home improvement work and engaged in scare tactics, authorities said on Friday.

The Pennsylvania Attorney General's Office announced Thursday that a settlement was reached with Gillece Services, Gillece Plumbing and Heating Inc., Thomas Gillece Sr., Thomas Gillece Jr. and two former Gillece technicians.

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A consent order filed in Allegheny County Common Pleas Court involves a settlement of $700,000 in consumer restitution, $50,000 in costs and $250,000 in suspended civil penalties. Should Gillece fail to pay what is owed, it could be liable for a $1 million judgment against it.

"Gillece pressured consumers to undergo expensive home repair work that was oftentimes unnecessary," Attorney General Dave Sunday said in a statement. "This settlement would not have been possible without the assistance of the consumers who brought this issue to (our) attention.

The lawsuit filed by the attorney general's office alleged that Gillece lured consumers experiencing sewer back-ups through the "$93 or Free Clog Crusher Special." While the offer promised to "crush" consumers' sewer clogs for $93 or the service would be free, once Gillece employees arrived at people's homes, many consumers were told that their clogs could not be cleared using a snake but could only be cleared through costly excavation work. The lawsuit alleged that the excavation work was unnecessary and that the sewer lines could have been cleared without digging up their properties. Many consumers were allegedly told that their sewer pipes had physical defects requiring replacement and later discovered that such defects did not exist.

The lawsuit also alleged that Gillece engaged in scare tactics in attempting to get people to sign home improvement contracts. Examples of this were customers being told they had gas leaks or cracked heat exchangers when in fact they did not.

The lawsuit also alleged that Gillece often performed shoddy work and was inconsistent with its written warranties.

The lawsuit contained other allegations that were ruled on in the attorney general's office on Office's favor on summary judgment, including:

• That Gillece didn't permit consumers to cancel home improvement contracts within three days and penalized consumers who cancelled by entering their properties without their permission.

• Gillece made false or misleading advertising claims and offers.

• Gillece made misrepresentations to consumers about their flat-rate pricing.

Under the settlement, Gillece has agreed to the following to address its allegedly deceptive practices: including, but not limited to:

• Improved certification of Gillece's plumbing and HVAC technicians.
• Gillece must document the defects that serve as the basis of their recommendation to repair or replace sewer pipes, and those defects must arise to a certain level of severity. NASSCO's defect standards.
• If Gillece cannot open a sewer line and documents defects, it must make multiple attempts to get the line opened using a snake and advise consumers of their option to seek a second opinion to confirm whether additional work is necessary to open the line.
• Gillece's HVAC technicians must be certified by North American Technician Excellence (NATE) and use only carbon monoxide detectors/meters calibrated by the manufacturer in accordance with the manufacturer's recommended schedule.
• Any Gillece diagnosis of a gas leak must be confirmed by the consumer's natural gas provider prior to Gillece selling such consumers any work to repair the leak.
• Any Gillece diagnosis of a cracked heat exchanger or other dangerous condition must be confirmed by two of Gillece's NATE-certified technicians.
• Gillece must create and maintain detailed records documenting the defects and/or conditions supporting their recommendations for certain repairs or replacements and provide the Office with such documentation upon request.

The settlement also bans the two former Gillece technicians named as defendants, James F. Hackwelder and Joseph A. Nikoula, from the plumbing industry for five years.

Consumers eligible to obtain restitution as part of this settlement will be contacted by the attorney general's office and do not need to take any action.

Based in Bridgeville, Gillece has locations in Pittsburgh, Allison Park, Baldwin, Bethel Park, Cranberry, Monroeville, Murrysville, Plum and Upper St. Clair.