An Auburn company that sells gold and silver bullion and coins to investors failed to deliver products on time and gave refunds that were unfair to customers, the state said in a lawsuit filed Wednesday.
The attorney general’s complaint, filed in King County Superior Court, accuses Northwest Territorial Mint of violating the state Consumer Protection Act and seeks penalties of up to $2,000 per violation and refunds for customers.
Ross Hansen, company owner, said the company sometimes has been late in its deliveries to customers because the U.S. and Canadian mints have shipped items late to his company, but he said he has caused no financial harm to his customers. He contends his company deals with investment products – not consumer items – and therefore is not subject to a state law that requires companies to refund customers’ payments within 30 days if they don’t deliver when promised.
“Many consumers who bought bullion from Northwest Territorial Mint lost the value of their investment,” Paula Selis, senior counsel in the Attorney General’s Office in Seattle, said in a news release. “By the time the order arrived, the gold or silver was worth less than what they paid.”
Ross said when customers order gold or silver items, the price is locked in the moment they place the order. If the value of the metal rises or falls afterward, his company will pay the increase or absorb the loss if the customer wants to cancel and change the order, he said.
The Attorney General’s Office, the Better Business Bureau and the Federal Trade Commission have received 82 complaints against the company, the state news release said.
Ross said many of those are the same complaints lodged with different agencies.
The lawsuit comes at a bad time for Ross and his company. Just last week, Ross testified at legislative hearings on bills that would give his company a tax break.
Joseph Turner: 253-597-8436
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