Buyer Beware: Products Advertised on Television Not Always Guaranteed

Aug. 23, 2007 - PRLog -- FOR IMMEDIATE RELEASE
Media Contacts:
Cindy Stranad
cindy@articulon.com
(919) 232-5008 x101

Beverly Baskin, BBB
bbaskin@raleigh.bbb.org
(919) 277-4202

Buyer Beware: Products Advertised on Television Not Always Guaranteed
Always Carefully Read Contracts Addressing Refund, Return and Exchange Policies

RALEIGH, N.C. (August 23, 2007) –The Better Business Bureau (BBB) of Eastern North Carolina advises consumers to buy with caution when ordering products offered through television advertisements. Highlighted in the August Consumer Alerts are reports of consumers receiving products that do not function properly, as well as difficulties with refund payments.

On television, Red Fitness advertises a rotation exercise device. Unfortunately, buyers are not made aware that the total cost of the product is more than $200. If payments are not made in full, the company has been known to send debts to outside collection agencies. Nearly 150 complaints have been filed against this company, which has an unsatisfactory record with the BBB.

“If ever buying a product from a television ad, be sure to read contracts and ask lots of questions to ensure the legitimacy of a company,” says Beverly Baskin, president and CEO of the BBB of Eastern N.C. “In addition, ask what the total charges for items will be, as well as the company’s refund, return and exchange polices. Fine print is easily disguised at the bottom of a television screen.”

In another case, a California-based company offers the cordless Swivel Sweeper through television advertisements. The BBB has received more than 140 complaints stating that consumers received sweepers that do not work and refunds were difficult to obtain. This company has the BBB’s lowest rating.

For more information on smart buying, visit www.bbb.org.

About the BBB of Eastern North Carolina:
The Better Business Bureau of Eastern North Carolina is a 501 (c)(6) not-for-profit corporation serving 33 counties in Eastern North Carolina. The organization is funded primarily by membership dues from more than 3,200 local business and professional firms. The BBB promotes integrity, consumer confidence and business ethics through business self-regulation in the local marketplace.  Services provided by the BBB include, reports on companies and charitable organizations, general monitoring of advertising in the marketplace, dispute resolution services, and consumer/business education programs.  All services are provided at no cost to the public, with the occasional exception of mediation and arbitration. Visit www.bbb.org.


CONSUMER ALERTS FOR AUGUST 2007

In an effort to keep the media and public informed, the Better Business Bureau of Eastern North Carolina offers monthly BBB Consumer Alerts as potential story or interview ideas. Readers should take into consideration the importance of the practice in question and the total performance of a company. This list is current as of release date. Information regarding business or consumer topics reported here can be obtained through the BBB office by contacting info@raleigh.bbb.org.

•   Phoenix Direct makes promises of employment, has a stated ethics policy and claims top-name clients. The problem? None of it is true. One consumer was told he could make $125 an hour, even during training. His first job was to test Wal-Mart’s Moneygram system. He was instructed to deposit the $2,500 check mailed to him by Phoenix Direct and then Moneygram the same amount to Canada. Too bad he did it, because the original check was counterfeit, and now he’s out the wired money.  
•   Counterfeit check scams are everywhere. One consumer has received twelve checks, ranging from $4,290 to $12,000, in the past nine months. He says this is only the tip of the iceberg. These checks accompanied letters informing the consumer that he had won $75,000 or $750,000 or even $1,800,000. In one scheme, he was instructed to call a toll-free number. When he called, he was instructed to deposit the check he had received and then wire or mail the same amount to cover taxes or transfer fees. Thank goodness the consumer didn’t do it, but there are lots of consumers out there who really believe they have struck it rich. They do as instructed, but when the bank processes the check, they find out that it is counterfeit.
•   Vivid Videos sells adult videos on the Internet. One consumer received a call from someone claiming to be with Girls Gone Wild, offering four videos for the price of one. When the consumer offered to send a money order, the caller refused, and kept asking for a credit card number. Complaints for this company all allege unauthorized credit card charges, difficulties with cancellation procedures, and with obtaining credits on the unauthorized charges.
•   Belford High School/Belford University sends emails offering a diploma based on life experience. The problem? The diploma is worthless! Belford is what is referred to as a diploma mill. Tell-tale signs of a diploma mill: No need to study; no attendance required; a flat fee is charged; guaranteed degree; you will receive your diploma in days, weeks or months; and they are typically via email. This Texas company has an unsatisfactory rating due to unanswered complaints.
•   The Cordless Swivel Sweeper is advertised on TV. Consumers are complaining that the product doesn’t work, but they have a difficult time getting a refund. Over 140 complaints have been filed against this California company, and they have the BBB’s lowest rating.
•   Red Fitness advertises its products on TV. Complainants who have ordered the rotation exercise device state they were not aware the total cost would be over $200. The company has been known to send debts to outside collection agencies when additional payments are not made. Nearly 150 complaints have been filed against this Texas company, which has an unsatisfactory record. The BBB advises the public to read the contracts carefully and ask a lot of questions if buying any item offered through a TV commercial. Ask what the total charges for the item will be and what the company's refund, return, and exchange policy is in advance.
•   “Geiko” Financial and Trust is an advance fee loan scam. Note Geiko is spelled with a “k” not a “c” like the well known insurance company. The scammers give an address in Annapolis, MD. However, when a BBB representative drove by the address, they discovered a newly constructed two level business center. No Geiko! The BBB rep called the property leasing company. No Geiko had ever leased from them. The BBB rep was able to find out that the company’s website is registered to a Francis Ivanson, with an address and cell phone number in Canada. Most of these advance fee loan companies are located in Canada, but give local addresses. Another of these operations gave an address in Indianapolis, which turned out to be the Catholic Archdiocese! Thanks to the Baltimore BBB for their investigation.
•   Social Security Administration (SSA) imposters have been calling older adults. These individuals are telling the older adults that they will be personally visited by a Social Security representative who will be explaining all of the changes in their social security benefits. Of course, the SSA does not utilize this method. If you, or someone you know, has received one of these calls, please contact the BBB and alert your local police department.