Aquakleen Lawsuit: Sewage Verdict, Oregon Probe, FTC Settlement

The Aquakleen lawsuit history spans more than a decade and multiple states: a nearly $1 million Colorado jury verdict tied to sewage-contaminated tap water, a California civil enforcement judgment over deceptive door-to-door sales, an Oregon Department of Justice investigation, and a $43.6 million Federal Trade Commission settlement with Aquakleen’s financing partner Aqua Finance. If you bought a water treatment system from Aquakleen or a similar door-to-door dealer, some of these actions may affect you directly.

The Colorado Sewage Contamination Verdict

The most serious case against Aquakleen Products, Inc. came out of Commerce City, Colorado. In 2006, an Aquakleen installer who was not a licensed plumber connected a water refinement system at the home of Nick and Roxanne Cattaneo in a way that created a direct cross-connection between the household’s drinking water and a sewer pipe.1Westword. Family Drinks, Bathes in Sewage Water; Firm to Pay $900K for Schmucky Mistake The setup created suction that pulled raw sewage into the family’s tap water.2CBS News Colorado. Commerce City Family Awarded Nearly $1M for Contaminated Water The installation was done without the building permits required by the City of Commerce City.3ABPA. Family Wins Lawsuit Over Drinking Water Contamination

The Cattaneos said their water smelled like feces.2CBS News Colorado. Commerce City Family Awarded Nearly $1M for Contaminated Water A Commerce City employee eventually discovered the cross-connection during a routine inspection, and the South Adams County Water and Sanitation District immediately shut off the family’s water.3ABPA. Family Wins Lawsuit Over Drinking Water Contamination

The Cattaneos sued in 2010. A jury ordered Aquakleen to pay more than $900,000: $465,000 to Roxanne Cattaneo for negligent infliction of emotional distress and extreme and outrageous conduct, and $462,000 to Nick Cattaneo under the Colorado Consumer Protection Act.3ABPA. Family Wins Lawsuit Over Drinking Water Contamination

Not an Isolated Installation

Inspections in preparation for trial found that all 58 Aquakleen water softeners checked in Commerce City had been improperly installed. Twenty had the same sewage cross-connection as the Cattaneo home. Aquakleen had installed roughly 150 such systems in the city.2CBS News Colorado. Commerce City Family Awarded Nearly $1M for Contaminated Water In October 2012, Commerce City mailed warnings to 151 homeowners and offered free inspections, giving Aquakleen a 30-day window to correct the installations.4Denver Post. Commerce City Warns of Sewage-Laced Water, Offers Free Home Inspection The sanitation district warned that the cross-connections could contaminate “not only the drinking water in the home, but also the community system.”3ABPA. Family Wins Lawsuit Over Drinking Water Contamination

The California Judgment

In January 2014, Ventura County Superior Court Judge Mark Borrell entered a judgment against Aquakleen Products, Inc. and its then-president Ross Allen Levine in a civil enforcement case. Prosecutors alleged that Aquakleen sold $5,000 water treatment devices through door-to-door sales aimed primarily at Spanish-speaking customers, used false advertising and misrepresented water quality, and installed devices in more than 150 residences before the legally required three-day cancellation period had expired.5Ventura County Star. Judge Orders Water Filtration Company to Pay Restitution to Customers

The court ordered $40,000 in restitution and civil penalties plus $62,000 in costs. Aquakleen was required to correct building code deficiencies and obtain permits for every system installed in Ventura County going forward, and the defendants were placed under a permanent injunction against fraudulent and unlawful practices. They did not admit liability.6WaterTech Online. Water Treatment Company to Pay Restitution for Unlawful Practices

The Oregon Investigation

The Oregon Department of Justice opened an investigation into Aquakleen Products, Inc. and two related entities, American Home Solutions and American Home Solutions, Jr., subpoenaing all three after receiving complaints. Agents were accused of running bogus water tests, falsely telling residents their municipal water contained sewage or that pipes were corroded, and claiming the U.S. government lied about water quality, all to sell unnecessary purification systems.7Help Now! Advocacy. Water Scam Targets Hispanics

Larry Kahn, director of Help Now! Advocacy, said the companies targeted Hispanic families and charged roughly ten times the equipment’s actual value, which he estimated at $500 to $800. Oregon’s deputy administrator for building codes said the company installed water softeners without a plumber’s license and lacked a Construction Contractor’s Board license. At least 22 complaints were filed in Medford alone.7Help Now! Advocacy. Water Scam Targets Hispanics

The Aqua Finance FTC Settlement and What Buyers May Recover

In May 2024, the Federal Trade Commission sued Aqua Finance, Inc., the company that funded loans for water treatment systems sold by a nationwide network of door-to-door dealers. The FTC alleged that dealers deceived consumers about financing terms, used teaser rates, misled borrowers about payment deferrals and interest accumulation, and failed to disclose that Aqua Finance obtained security interests, effectively liens, on consumers’ homes.8FTC. FTC Action Leads to $43.6 Million in Financial Relief From Water Treatment Financing Company Aqua Finance The complaint said Aqua Finance had received thousands of complaints since 2018 and failed to stop the practices.9Legistorm. FTC Action Leads to $43.6 Million in Financial Relief From Water Treatment Financing Company Aqua Finance The FTC said dealers targeted older adults and Spanish speakers, pressuring them to sign financing documents they did not understand.10FTC. Aqua Finance Misled People About Financing Home Water Treatment Systems

The FTC’s filings refer to a “nationwide network of dealers” rather than naming individual companies, so the agency has not publicly identified Aquakleen as one of the dealers in question. The sales model described, however, closely tracks the practices alleged against Aquakleen in Colorado, California, and Oregon.

The settlement provides $43.6 million in consumer relief: $20 million in refunds and $23.6 million in debt forgiveness, including the lifting of liens on consumers’ property. As of February 2025, more than $19.8 million in refund checks were going out to 29,653 consumers.11FTC. FTC Sends More Than $19.8 Million in Refunds to Consumers Harmed by Aqua Finance’s Deceptive Sales Tactics The consent order requires Aqua Finance to monitor its dealers, investigate complaints, terminate agreements with dealers who repeatedly mislead consumers, and provide clear disclosures about liens and financing terms.8FTC. FTC Action Leads to $43.6 Million in Financial Relief From Water Treatment Financing Company Aqua Finance

Recent Consumer Complaints

Aquakleen’s Better Business Bureau profile shows continuing dissatisfaction. As of 2026, eight complaints have been filed in the last three years, seven involving service or repair issues. Consumers describe delayed or negligent technician visits, malfunctioning systems, unmet promises about alkaline water, and disputes over financing on systems costing upward of $7,650.12BBB. Aquakleen Complaints

One customer said a pipe burst caused significant water damage from a faulty installation; Aquakleen initially denied liability, citing an expired warranty, and paid $1,200 after the customer threatened suit. Another said they were told the water would not contain salt despite their high blood pressure, then tasted salt and had health problems. A 2026 complaint described being routed to Spanish-speaking representatives after selecting the English option and being told no English-speaking agents were available.12BBB. Aquakleen Complaints

If you financed an Aquakleen system through Aqua Finance, check whether you are among the 29,653 consumers receiving refund checks under the FTC settlement, and review your loan documents for any lien recorded against your home. If your system was installed in Commerce City, Colorado, or Ventura County, California, permitting and cross-connection problems have been documented at scale, and an independent inspection is worth the cost.