Not only does this hit this company exactly where it hurts (their bank account), it also restores faith in the power of consumers.
But it ALSO reminds us to be diligent in knowing the companies that we do business with. The web has created a false sense of trust (been bitten myself). These people will likely change their name and reopen as something else. BUT even so, they are on notice, and even if they do stay in business, they will most likely realize that eventually that kind of behavior catches up with them.