Many small businesses reported serious issues after working with Direct Fairways. Over 300 complaints were filed with the Better Business Bureau (BBB) in three years in three years, with 90 complaints closed in the last 12 months alone. Common problems included:
- Unauthorized charges: Customers claimed they were billed multiple times without permission. One business agreed to an $800 yearly fee but faced $6,400 in extra charges. Another paid $675 for a service but was charged $1,050.
- False promises: Ads were not placed at golf courses as agreed. Some golf courses denied partnering with Direct Fairways.
- Poor customer service: People could not reach the company by phone, email, or live chat. Calls went unanswered, and messages were ignored.
Legal Actions and Class-Action Lawsuits
In 2022, a class-action lawsuit was filed against Direct Fairways by small businesses and former employees. The lawsuit focused on:
- Deceptive advertising: Salespeople misled customers about ad placements and costs. Contracts were vague or misleading.
- Labor violations: Workers said they were wrongly labeled as “independent contractors.” This denied them overtime pay, health benefits, and legal protections.
- Unfair business practices: The company charged upfront fees but failed to deliver services. Refund requests were ignored.
Table: Key Allegations in the Direct Fairways Lawsuit
| Complaint Type | Number of Reports | Examples |
|---|---|---|
| Unauthorized Billing | 100+ | Multiple charges after one-time payments |
| Undelivered Services | 90+ | Ads not placed; no proof of distribution |
| Worker Misclassification | N/A | No benefits; unpaid overtime |
Business Impact and Industry Changes
The lawsuit damaged Direct Fairways’ reputation and caused broader changes in golf advertising:
- BBB warnings: The company has a low BBB rating due to unresolved complaints. Over 100 complaints cite billing issues and undelivered services.
- Industry distrust: Golf courses now avoid similar marketing deals. Small businesses check contracts more carefully before signing.
- Financial losses: Affected businesses lost hundreds to thousands of dollars. Some faced bank disputes to recover funds.
Lessons for Small Businesses
This case offers important lessons:
- Research companies before paying. Check BBB ratings and online reviews.
- Get everything in writing. Avoid verbal agreements. Read contracts closely, especially about billing and cancellations.
- Verify ad placements. Ask for proof your ads were displayed. Contact golf courses directly to confirm.
- Report problems to the FTC or BBB if a company acts unfairly. This helps protect others.
Current Legal Status
Legal cases against Direct Fairways continue, though at a slower pace. Affected customers can still join lawsuits or file new complaints. The outcome may lead to stricter rules for advertising firmsand better protection for small businesses.