Arizona AG settles with DIY Neurocare co-founder over refund policy
May 23, 2020, 5:00 PM
PHOENIX — The Arizona Attorney General’s Office has reached a $115,000 settlement with Lyle Day, co-founder of DIY Neurocare of America, over an unfulfilled refund policy.
The state’s 2018 lawsuit alleges the company used a 12-month “no-risk 100% money-back guarantee” to induce consumers.
DIY Neurocare of America supposedly sold light pads, supplements and coaching phone calls in packages costing $2,000 to $4,500, claiming the items could treat symptoms of peripheral neuropathy and other ailments.
The company then went out of business, leaving customers without a way to get their money back after following the protocols of the refund guarantee.
Day sent a letter to consumers who had requested a refund a few months after ceasing operations stating that while he was the current CEO of the company, he had left with no equity and no money to operate the business, according to the consent judgment.
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The letter also stated Day told customers he had resigned from the company and could no longer help.
The state alleges Day’s conduct constituted deceptive and/or unfair acts and practices in violation of the Arizona Consumer Fraud Act.
While Day does not agree with the state’s allegations, he wishes to resolve the matter without further litigation, according to the consent judgment.
Upon court approval, Day will pay $105,000 in restitution that the state will distribute to customers who tried to comply with the conditions of the refund policy.
Day will also pay $10,000 in attorneys’ fees.
The state is continuing to pursue a lawsuit against the other co-founder of the DIY Neurocare of America Joseph DiDuro after previously obtaining a judgment against the company for $720,826.
