Stamford Company Accused of Misleading Ad Practices

Consumer advocates in South Carolina are warning residents there that an advertisement letter sent out by an insurance company based in Stamford, Connecticut, bearing a City of Myrtle Beach, SC, logo is not affiliated with the city and is therefore misleading.

According to a report on NBC affiliate WMBF News’ website, the bulk mailed advertisement from Stamford-based Home Serve USA offers homeowners supplemental insurance for their water pipes. However, because of the logo, some recipients have been falling under the impression that the insurance is being offered by the city or state.

In the report, Coastal Carolina Better Business Bureau CEO and President Kathy Graham called the advertisements “misleading,” because they include the logo. In addition a Myrtle Beach public works official said in his opinion the insurance is unnecessary for most homeowners.

According to the report the state attorneys general of Ohio and Kentucky filed actions against Home Serve USA in 2010 for questionable advertising practices. The company reportedly settled both actions.

Home Serve USA, with offices at 750 East Main Street, offers insurance plans and emergency repair services for homeowners’ water, sewer and gas lines, electrical wiring and HVAC equipment. The global company has offices in Europe and the US.