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UNITED MICRO SYSTEMS

United Micro Systems (UMS) was a company that specialized in non-surgical hair replacement. The company was located in New Jersey and thousands of people have seen their advertisements in GQ magazine. 

The demise of United Micro Systems shouldn't come as a suprise to anyone. For those who have visited HairSite's Discussion Group, you will notice that the company is overwhelmed with negative comments from our readers.

On January 20, 1999, The New Jersey Department of Law and Public Safety issued a press release announcing a lawsuit against UMS for "ALLEGED HAIR REPLACEMENT SCAM". Upon accusations brought forward by New Jersey Division of Consumer Affairs, the Camden County Superior Court judge froze the assets of UMS on January 19, 1999. The New Jersey State charged UMS for repeatedly making false and misleading claims about its "Dermal Retention" hair system on the internet and in magazines. UMS claimed that the "Dermal Retention" is a permanent hair system when in fact it is no difference from other hair replacement that involves gluing a toupees to the clients' scalps.  It was alleged that UMS charged victims from across United States and Canada anywhere from US $2,000 to US $8,000 for the procedure.

The defendants named in the lawsuit include UMS' former owner Karen Levine, current owner and president William Fillmyer and his assitant,  the customer service manager, office manager, and sales consultant. The initial hearing is scheduled to take place on May 18, 1999. A couple of the defendants are licensees of the New Jersey Board of Cosmetology and Hairstyling and they are being referred to the Board for possible disciplinary action.

Specifically, UMS' troubles came from its claims that the "Dermal Retention" system is "the secret of the Rich and Famous" and that it was virtually permanent and maintenance free with over 98% success rate. UMS also misled its clients into believing that individual clusters of hair would be attached to their scalps by a medical grade solution approved by the FDA.

According to the New Jersey State Division of Consumer Affairs, several of the defendants named in the lawsuit are also former employees of International Cosmetics Laboratories, Inc. (ICL). ICL was another hair replacement company that was charged for marketing a baldness cure called "cosmetic suture process" and was prosecuted in 1994 by the State. ICL eventually went bankrupt.

Among some of the accusations brought against UMS by the New Jersey State are:

• Gross misrepresentation and fraudulently claimed that Dermal Retnetion is a permanent procedure that would create an individual hair effect.
• Promise of a natural and undetectable hairline.
• Used false and misleading before-and-after pictures in its promotional and marketing materials.
• Promise of a customer satisfaction guarantee.

According to the New Jersey Division of Consumer Affairs, a brief recap of some of the complains against UMS include:

• 5/95 - refund
• 1/97 - refund
• 7/97 - unsatisfied merchandise
• 1/98 - refund
• 1/98 - defective merchandise
• 1/98 - refund
• 1/98 - refund
• 1/98 - False pretense
• 1/98 - Not as ordered
• 2/98 - unsatisfactory service
• 2/98 - unconscionable commercial practice
• 2/98 - refund
• 3/98 - False pretense

The New Jersey State seeks to revoke UMS' corporate charter in New Jersey and to have the defendants pay restitution to the victims.

The Deputy Attorney General handling this case is David Puteska of the Division of Law in New Jersey.

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