General Consumer Protection FAQs

What Is Consumer Fraud?

Consumer fraud encompasses a wide range of improper practices involved in the advertising, marketing, sale, or provision of goods or services. For example, consumer fraud may occur when a product or service does not perform in the manner in which it was advertised or represented to perform. It may also occur when a company overcharges or improperly charges consumers for a product or service. Additionally it may occur when a company interprets a form contract or agreement in a manner that unfairly disadvantages consumers.

If you feel that you have been treated unfairly by a provider of goods or services, you may have been the victim of consumer fraud, and it may be worthwhile to investigate the matter further.

What Should I Do If I Think I Have Been Defrauded?

There are a number of steps you can take. The first step is to contact the company that you believe has engaged in consumer fraud and try to get your problem resolved. If you do not get satisfactory results from the person who answers the phone, ask to speak to a superior. "Higher ups" in the company can often resolve a problem for a consumer even when lower-level employees cannot, especially if the problem is an isolated incident. There are also numerous governmental and private organizations that can help you. Most state Attorney General offices have consumer protection divisions, and many have consumer complaint hot lines and web pages. Many states and larger cities have consumer protection boards, administrations, or agencies. Federal agencies such as the Federal Trade Commission may also be helpful. In addition, such organizations as the Better Business Bureau can be of invaluable assistance with complaints of consumer fraud. Refer to the Resource Links below.

You may also want to consult an attorney, especially if you have suffered a large loss or damage or you feel that your problem is also being experienced by a large number of other people. However you decide to proceed, you should be sure to document the problem as completely as you can. Save all receipts and written materials provided by the company. Take notes on all of your conversations with the company. It may be helpful in certain instances to take photographs if they will help to demonstrate a problem. The more you can document about your purchase and any problems you are having, the better your chance of success.

I Hate Being Interrupted at Dinner by Telemarketers, What Can I Do to Stop this Hassle?

Effective July 1, 2003, people fed up with unwanted telemarketing can put their name a national do-not-call list that will block many sales calls. You can sign up for the new federal do-not-call protections by email at donotcall.gov or by phone at (888) 382-1222. Beginning in September, 2003, telemarketers will have to check the list every three months to determine who does not want to be called. Those who call listed people could be fined up to $11,000 for each violation. Buoyed by the positive public response to the do-not-call law, Capitol Hill lawmakers have also vowed to set their sights on e-mail spammers who clog in-boxes with more than 100 billion unsolicited electronic messages a day. Time will tell if this promise comes to pass.

My Elderly Aunt Had a Guy Come to Her Door and Offer to Do Some Repairs He Had Spotted. He Got My Aunt to Sign a Contract and Pay an Advance Fee. He Then Left to Get Materials and She Has Never Seen Him Again. What Can I Tell Her to Do in the Future So She Does Not Get Caught Again?

It is good advice never to hire a person who just arrives at your doorstep. If you need work done, get advice and recommendations from family and friends. Even then, it's a good idea to get a few estimates before you decide whom to use.

You can check out a contractor's qualifications by calling your local Better Business Bureau, or the consumer services branch of your state government. There might be rules about the way contracts are concluded outside of a business place and who can make such contracts. It would not be unusual, for example, that the contractor should be licensed and bonded in order to do business in this way.

Consumer legislation in your state likely allows for the reporting and investigating of such incidents. Your local state office of consumer affairs will be able to tell you what options exist in this regard.

Why Do Direct Marketers Rent and Exchange Lists?

Clearly, it makes no economic sense to send out thousands of letters to people who have no interest in your product, service or cause. Nor does it make environmental sense.

Lists are nothing more than a way to identify a market for products and services. Direct marketing businesses succeed or fail by their ability to determine who is most likely to buy what they offer. So they rent or exchange lists of consumers whose interests have been narrowed by their earlier purchase behavior and other characteristics that might reasonably be assumed to make them likely prospects. For the direct marketing business person, lists of hundreds of thousands of names are the instruments that can create a thriving business by filling consumer needs. The by-product is the creation of jobs and healthy contributions to the American economy.

What's on a Consumer Fraud Mailing List?

Mailing lists that are supplied to renters contain names and full addresses. And lists commonly contain hundreds of thousands of names. When marketers rent a list, they have no interest in individual information only in the characteristics that put all those people on a particular list. For example, a list of subscribers to a ski magazine might represent a potential market for a sports clothing catalog.

The names on a list become individuals only when they reply to an offer and become customers. Then, good marketers want to serve you just as personally as small town merchants did long ago. They keep accurate records of your purchases and preferences in order to serve you as well as they can. For example, one direct marketing company uses its computerized records to remind busy customers of birthdays for which they have sent presents in previous years. But your purchase information is useful to them only when you are being served personally when you phone, for example. Otherwise, information is only of use to the marketer in the aggregate. The records of hundreds or thousands of customers help them, for instance, to avoid being out of stock on popular items or to spot buying trends, to meet the needs of the large numbers of customers necessary to create a profitable business.

How Can I Restrict the Rental or Exchange of My Name?

The American system of government places a high value on the right of its citizens to receive information and the right of businesses to provide information. Indeed, the First Amendment to the Constitution guarantees those rights. And many people enjoy and value advertising mail: 40% of the American population, more than 80 million adults, buy direct each year.

Yet, direct marketing companies recognize that some customers just don't like the idea of having their names and addresses shared with other companies. There are still other consumers who simply do not shop direct. Today, both preferences can be satisfied.

Many businesses (and the number keeps growing) that rent or exchange their customer lists will gladly remove a customer's name from those lists. Most companies clearly announce this service on their customer information pages or on their order form. The wording is different from one company to another, but the meaning is clear: they will abide by your wishes as a valued customer.

Will Ordering a Product Increase My Chance of Winning a Sweepstakes?

No, placing an order will not increase your chance of winning a legitimate sweepstakes. A person who enters without placing an order has the same chance of winning as a person who places an order. In fact, of the people who have been awarded a prize of 1 million dollars or more by one popular company, most did not include an order for the company's products with their entries.

How Can I Tell the Difference Between a Legitimate Sweepstakes and a Fraudulent Sweepstakes?

Fraudulent operators have become adept at disguising their schemes to look like sweepstakes. While fraudulent promotions can seem very similar to legitimate sweepstakes, scam offers usually require an up-front entry fee. Many times, the entrant is asked to pay "taxes" or "shipping and handling charges" for the prize. After the consumer pays, no prize ever comes and the promoter is difficult to contact.

Some scam artists try to confuse consumers by using variations of nationally-recognized names or by claiming to represent a known sweepstakes sponsor. When in doubt, call the sweepstakes sponsor directly to verify. Remember, legitimate sweepstakes sponsors never require an entry fee or payment to claim a prize.

How Can I Remove My Name from Credit Bureau Marketing Lists?

You may contact the credit bureaus individually (see information below) or call their toll-free number at 1-888-5-OPT-OUT to reach the National Opt Out Center. This hot line was established by Equifax, Experian and Trans Union Corporation to assist consumers in removing their names from the three major credit bureaus' pre-screening or other marketing lists.

Equifax
Equifax Credit Information Services, Inc.
P.O. Box 740241
Atlanta, GA 30374
800.685.1111 (for general inquiries)
800.567.8688 (for opting out of mailing lists)

Experian (formerly TRW)
Experian Consumer Services
901 West Bond Street
Lincoln, NE 68521
1.800.407.1088

Trans Union Corporation
TransUnion LLC's Name Removal Option
P.O. Box 97328
Jackson, MS 39288-7328

Aside from an Attorney, Who Else Can I Contact To Complain of a Consumer Fraud?

Set forth below is a list of government and private organizations dedicated to preventing consumer fraud:

Federal Communications Commission (FCC)

The Federal Communications Commission regulates interstate, international and, in some instances, intrastate communications relating to radio, television, wire, satellite and cable. The FCC has created a number of bureaus and offices within its organization to develop, implement, enforce and communicate to consumers and businesses these regulations that govern our communications industry.

Consumer Information Bureau
445 12th Street, SW
Washington, DC 20554
1 888 CALL FCC (Voice)
1 888 TELL FCC (TTY)
fccinfo@fcc.gov

The Federal Trade Commission (FTC)
The Federal Trade Commission enforces a variety of federal antitrust and consumer protection laws. The Commission seeks to ensure that the nation's markets function competitively, and are vigorous, efficient, and free of undue restrictions. The Commission also works to enhance the smooth operation of the marketplace by eliminating acts or practices that are unfair or deceptive.

Bureau of Consumer Protection
Federal Trade Commission
CRC 240
600 Pennsylvania Ave, NW
Washington, D.C. 20580
Toll free number: 877-FTC-HELP (877-382-4357)

U.S. Postal Inspection Service
If you or someone you care for has been victimized by a fraudulent promotion offer, you should contact the United States Postal Inspection Service (USPIS) toll free at 800-372-8347 or online at http://www.usps.gov/postalinspectors

Please feel free to give us a call at 1-800-306-6010 or contact us online.

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