AG’s lawsuit accuses Gillece of misleading customers

State Attorney General Josh Shapiro on Tuesday announced a lawsuit alleging Gillece Services deceived customers into paying for costly and unnecessary home improvement work.

The suit says the home service company used a “widespread bait- and- switch scheme” to defraud consumers into paying for unnecessary services, particularly sewer pipe replacements.

A complaint filed in the Allegheny County Court of Common Pleas says the company — owned by Thomas J. Gillece — would make little attempt to clear clogged drains by using only a “starting drill,” which is designed to get water flowing but not to clear large clogs or foreign objects.

Then it would recommend excavation instead of trying to snake the clog.

“In essence, [ Gillece] set themselves up to fail at opening customers’ sewer lines in order to sell consumers costly work that they did not need,” the complaint reads.

Gillece employees would use “high- pressure sales or scare

tactics” to convince customers to incur more cost by suggesting their health or safety is at risk — something they were highly incentivized to do since some of them worked on 10% commission, the complaint says.

Field supervisors — one of the types of technicians sent out to work on such repairs — had no minimal vocational job qualifications and they “often do not have any vocational schooling or licenses,” Senior Deputy Attorney General Jill T. Ambrose wrote in the complaint. Service technicians and managers were more likely to have vocational training but also had no such requirements.

John Linkosky, the attorney representing Gillece, said, “I take issue with just about everything that Jill put in that complaint.”

He called the allegations of using only a starting drill “nonsense” and said the tip that Gillece technicians use is “the standard in the industry.”

Mr. Linkosky said the AG’s office is targeting Gillece despite the fact that it complies with all aspects of the law. He added that the company has serviced more than 60,000 customers since 2018, and the AG’s complaint lists only 11 customer examples of alleged unfair practices.

“It’s my responsibility to do all I can to protect everyday consumers,” Mr. Shapiro wrote in a release. “Right now, when so many have lost wages and millions are out of work, it’s more important than ever that Pennsylvanians feel someone is watching out for their bottom line.

“Tacking on extra, unnecessary, work to squeeze money out of vulnerable homeowners is garbage, plain and simple.”

The AG’s investigation found that Gillece advertises a “$ 93 or Free Clog Crusher” offer to clear a clog on the first try ( some offers even say it could cost $ 49), but the tactic leads to unnecessary and costly upselling by the company.

Investigators said technicians would sometimes successfully clear the clog but falsely claim that the pipe was damaged and needs a replacement.

One customer requested the service on two separate occasions for two different drains, the complaint says. When the technician pressed the customer to sign a contract for a repair that could’ve cost between $ 2,700 to $ 11,000, the customer refused.

“When the consumer asked the technician how he could sleep at night charging consumers that much money for plumbing work, the technician told the consumer, ‘ I only answer to Mr. Gillece. He pays my check,’” the complaint reads.

Along with Mr. Gillece, two of the company’s employees are named in the complaint: James F. Hackwelder, a former service manager, and Joseph A. Nikoula, a field supervisor.

Other allegations include that the company refused to accept customers’ cancellations or retaliated against cancellations by refusing refunds.

One employee purposely caused a piece of equipment to get stuck in a toilet in order to coax a customer into a repair or replacement, the complaint says.

Customers are often liable for any damage because of a waiver.

The complaint also notes that — in addition to negative reviews on Google and Yelp — Gillece Services racked up 77 consumer complaints to the Better Business Bureau between 2016 and 2020. Gillece Services has a BBB rating of A+ and is not an accredited member.

Additionally, the company does not disclose the multiple restrictions on its slogans like the “Same day or you don’t pay” offer, including that it doesn’t count toward repair costs — “same day” means the day the person calls to set up the repair and that it only applies when a customer has no heat, AC or water.

The complaint includes six counts of violations to the Pennsylvania Consumer Protection Law and the Home Improvement Consumer Protection Act, including alleged failure to complete home improvement contracts in a workmanlike manner and deceptive acts by misrepresenting the need for repairs.

Mr. Linkosky said he intends to vigorously defend the allegations.