A battle is brewing between the Minnesota Commerce Department and one of the state's largest auto-glass repair firms over alleged unfair sales practices.
Safelite Group, based in Columbus, Ohio, claims Commerce Commissioner Michael Rothman is trying to drive the company out of Minnesota with regulatory decisions that ban the company from doing business with one and possibly more key insurers in the state.
But Rothman said his department's actions are consumer-driven and were prompted by complaints about Safelite's domination in the glass repair marketplace.
Earlier this week, Safelite filed a lawsuit in U.S. District Court seeking an injunction to stop enforcement of a cease-and-desist order signed by Auto Club Group, preventing the insurer from doing further business with Safelite. Auto Club is part of AAA, the auto travel giant.
Last month, the glass service firm also filed an appeal with the Minnesota Supreme Court regarding the Commerce Department ruling on the grounds that it was not allowed to present its side during enforcement action proceedings.
The Commerce Department order, dated Jan. 8, asserted that Safelite discouraged insured motorists from using its competitors through misleading statements about warranties, charges and availability of other providers.
An earlier appeal to the Minnesota Court of Appeals was dismissed in February in part because Auto Club "did not dispute the charges against it and consented to the proposed administrative action."
In recent court documents, Safelite said its First Amendment rights to free speech and 14th Amendment rights to due process are at stake.