WICHITA, Kan. (KSNW) – Riverside Café’s parent company and its owner have entered into a consent judgment and injunction to pay $60,397.28 for charging customers an illegal surcharge of 4% on credit paying customers at its three locations 9125 W. Central Ave., 739 W. 13th St. N. and 824 N. Baltimore Ave. in Derby.
The Sedgwick County District Attorney’s Consumer Protection Division received several consumer complaints, and the office investigated and informed Paul Cohlmia and Riverside Ventures, Inc. that the surcharge was in violation of K.S.A. 16a-2-403 and also the Kansas Consumer Protection Act (KCPA).
The cost of identifying and paying specific consumers for the roughly 50 cents they were overcharged would be impractical, so as part of the consent judgment and permanent injunction defendants admitted to the violations, stopped charging a surcharge, and agreed to pay $30,000 to bona fide charitable organizations serving Sedgwick County.
Defendants also agreed to pay a $30,000 civil penalty along with court costs and investigative expenses for a total of $60,397.28.