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BBB Warns Against a Summer Scam Going Door-to-Door Nationwide

5/7/2009

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For Immediate Release – May 7, 2009 - Better Business Bureau warns that deceptive door-to-door magazine sales crews are hitting the pavement and looking to earn a quick buck this summer. In the last 12 months alone, BBB has received 1,100 complaints nationally from consumers in 46 states and the District of Columbia against more than 50 companies that are selling magazines door-to-door.

Many of these companies employ crews of high school and college-age people who are trying to earn money over the summer. These crews are sent to communities to knock on doors and sell magazines—sometimes without appropriate licensing. In the sales pitch, the representative might explain they are working to help get their lives back on track, raising money on behalf of a charity or for a school trip or even selling subscriptions to support troops in Iraq.

Because sales representatives are typically high school or college-age, victims readily believe the potentially fictitious sales pitch and often pay several hundred dollars for the subscriptions by personal check given directly to the sales reps. Most complaints against such companies allege that sales reps took their check and the magazines never arrived, however, some complainants also report being subjected to high-pressure and misleading sales tactics.

In the last year, BBB nationally has received complaints on more than 50 companies conducting door-to-door magazines sales.

  • A Euclid woman purchased magazines from Chesapeake, VA-based True Visions Inc. from a door-to-door salesman who said the company helps former prison inmates “..get their lives together.” Her $46 subscription never arrived and neither did her promised refund.

  • After hearing a 30-minute sad story from a Greater Image, Inc. door-to-door saleswoman last summer who said she was trying to support her children who lived in Texas, a Strongsville resident wrote a check for $32 for two children’s magazines. The magazines never arrived and calls to Greater Image were answered with a recording that the voice mail was full. Consumers from Avon Lake and Chagrin Falls reported similar experiences; and,

  • Universal Subscription Agency, a Norfolk, Virginia company, generated complaints from Elyria, N. Royalton and Sheffield Village from residents who did not receive purchased magazines and were unable to speak to anyone at the business.

All of the above mentioned companies have “F” ratings with the Better Business Bureau due to complaint activity

“Experience tells us that customers aren’t the only victims of this scam; the young salespeople are also potentially being taken advantage of by their employers and forced to work long hours, endure substandard living conditions and have their wages withheld from them,” said David Weiss, BBB president.

BBB offers the following advice to avoid getting scammed by a door-to-door magazine sales rep:

  • Always research the company with your Better Business Bureau for free at www.cleveland.bbb.org before filling out a check for a magazine subscription.
  • Check with your local City Hall to determine if the magazine sales company needs to have a permit to solicit door-to-door in your neighborhood.
  • Don’t purchase magazines based solely upon the sales rep’s “hard luck story” or to help him/her win a scholarship or other prize. These sales claims may not be true.
  • The Federal Trade Commission’s Three-Day Cooling-Off Rule gives the customer three days to cancel purchases over $25 that are made in their home or at a location that is not the seller’s permanent place of business. Along with a receipt, salespeople should also include a completed cancellation form that customers can send to the company to cancel the agreement. By law, the company must give customers a refund within 10 days of receiving the cancellation notice.
  • Victims of fraudulent magazine sales can file a complaint with the Better Business Bureau at www.cleveland.bbb.org, local law enforcement, and Ohio Attorney General.

About BBB

BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 125 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than four million local and national businesses and charities. Please visit www.cleveland.bbb.org for more information about BBB.

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