AG sues GTA alleging ‘deception’; company says it did nothing illegal

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The Office of the Attorney General (OAG) has filed suit against Teleguam Holdings, commonly known as GTA, for illegally passing the Business Privilege Tax (BPT) on to customers and creating the false impression that BPT is a mandatory surcharge the government imposes on customers.

“Businesses are required to pay BPT, not consumers,” said Assistant Attorney General Ben
Paholke. “Customers should not have to hire an attorney to comb through the fine print of
several agreements to understand why a company has advertised one price, then charged
them another.”

The filing falls on the eve of National Consumer Protection Week and the Guam and
Saipan ‘One Marianas’ Campaign, a time when observing the rights of consumers and
helping them understand their rights are brought to the forefront.

Responding to the lawsuit, GTA said it did nothing illegal and remains committed to providing its customers with quality offerings that have their best interest in mind.

“We continue to strive for consistent customer experiences, foster connections with customers through open communication, and instilling clarity and transparency by being forthright about our service offerings, fees, and contract terms. We believe our actions have been proper and legal, and in line with our commitment and responsibility to transparency in billing. We are committed to working with and resolving this issue with the AG,” the company said in a statement sent to PNC.

The Consumer Protection Division of the OAG is charged with investigating, enforcing,
filing lawsuits and recovering funds on behalf of Guam’s consumers when companies or
businesses engage in false, misleading, or deceptive business practices.

Residents who wish to report claims of false, misleading, or deceptive trade practices can
email consumerprotection@oagguam.org or call (671) 475-2720.

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