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2 Grand Rapids businesses under investigation for earbud scam

Attorney General Dana Nessel's office is conducting the investigation of Blvck Pods, LLC and BlvckedPods, LLC.

GRAND RAPIDS, Mich. — The State's Attorney General's Office is investigating two Grand Rapids earbud companies that are selling non-working earbuds or nonexistent ones. 

The investigation comes because customers say the product doesn't get delivered nor are the customers getting refunded for their money. 

Blvck Pods, LLC and BlvckedPods, LLC have caused complaints from customers around the world who believed they were buying "100 percent custom and unique" products from Grand Rapids, according to the office's press release. 

However, the earbuds are manufactured out of company in China that the two Grands Rapids businesses are operating a dropshipping business with. 

Dropshipping isn't illegal, but Attorney General Dana Nessel said in the press release it's a variation of the all-too-familiar theme of duping and bilking consumers. 

"With this investigation, my office is taking the first step toward stamping out illegal activities in this new and growing online arena," she said. 

The office served the company owners Thursday morning after they filed an ex parte petition for investigative subpoenas against them in the Kent County Circuit Court. 

In the petition, the attorney general outlined allegations made against the companies because she has "probable cause to believe they engaged and continue to engage in deceptive activities that violate Michigan's Consumer Protection Act," according to the press release. 

According to the Attorney General's Office, dropshipping creates concerns under the act. 

To educate and protect Michigan consumers from the supply chain management method, Nessel's Consumer Protection team issued an alert which you can see here

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