Company to pay $70K for claims ruled misleading

Denver-based Nationwide Medical Supply Inc. agreed to pay Colorado $70,000 after the business made misleading claims about the masks and respirators it sold during the pandemic, according to a Monday news release from the state attorney general’s office.

“During a public health emergency, Coloradans and Colorado businesses need to be able to trust that the potentially lifesaving products they are purchasing are as advertised,” Attorney General Phil Weiser wrote in the news release. “We must hold irresponsible businesses accountable for deceptive practices, especially those that have the potential to cause direct harm to consumers.”

Nationwide Medical Supply Inc. denied the attorney general’s allegations in a statement.

“If true, the allegations establish only that Nationwide reproduced information provided to them, and did not intentionally mislead the public,” the company wrote.

Rather than fight the allegations in court, the company said it would improve its due diligence policies and procedures and continue “to be a trusted source of crucial PPE.”

Nationwide Medical Supply Inc. sold personal protective equipment beginning in April.

False claims the business made, according to Weiser’s officer, include marketing a KN95 mask as an N95 respirator, claiming an N95 respirator and a KN95 mask were FDA/CE-approved, and using the FDA logo in violation of applicable law.

The state tested the filtration of the masks the company sold and discovered one mask performed as advertised but the second did not meet the advertised 95% removal filtration, instead testing at around 70%.

The state also alleged the company price-gouged, which is prohibited during public emergencies, the news release said.

The company sold masks at a markup exceeding 250% of Nationwide’s costs in obtaining the masks in some cases, the news release said.

At least once, the company authorized salespeople to negotiate prices with Nationwide’s customers and gave the salespeople a commission based on whether they could sell masks to medical and government purchasers for higher prices, the news release said.

As part of the settlement, Nationwide agreed to stop making false or misleading claims about the masks and respirators it sells and ensure the equipment and certificates attached to it are authentic.