BBB Cautions: Refunds and Exchanges are a Privilege Not a Right for Consumers

What do you do if you receive a Christmas present that doesn’t fit? Or one that you don’t want? Returns and exchanges are common, but the BBB cautions consumers that these actions are privileges a business provides, and not a consumer’s right.

“If you find yourself with an unwanted gift, many stores will allow refunds or exchanges for the sake of good customer relations,” explains Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois.  “However, customers need to remember these actions are privileges stores may allow. They are not consumer rights.” 

Bernas urges that no matter whether the item was purchased in a brick-and-mortar store or online, it is wise look up and understand the return policies to avoid surprises and confusion. Here are several tips and hints to make the process easier for all involved.

•    The most important first step is to determine where the item was purchased.  If you have a gift receipt, it makes the return situation much easier.  However, if you don’t have a receipt, you need to prove that the item was purchased at a given store.  Another more basic issue is the question of whether or not the store will take back the item for either a refund or exchange without proof of purchase.
•   Refund and exchange policies differ. Each store, and in some cases different departments within stores, may have varying refund and exchange policies.  These can depend upon the product or usage.  Policies about returns and exchanges are usually available from the cashiers, stated on the sales slip, or available online. 
• Expect to pay some fees.  Return shipping charges are common.  You may also be subject to restocking fees.  Again, it pays to know the store’s policy ahead of time.
•  Time limits may apply.  Many times stores have a time limit on how long you can keep an item and still return it.  This is usually stated on the receipt or on the company’s website.
•   Unsure, ask the gift giver. If you are not certain where the gift you want to return was purchased or if you don’t have a receipt, ask the gift giver where the item was purchased.  If that person has a receipt, perhaps they could exchange it for you.  If this isn’t possible for personal reasons, you unfortunately have a dilemma.  You can try to return it to the store where you believe the item was purchased.  However, they do not have to accept it back for either a refund or an exchange. 

“When questioning a return or exchange policy, look at the situation from the store’s perspective, Bernas noted. “How does that retailer know that the gift was purchased there?  What evidence do you have that you aren’t trying to cheat the store?” 

And Bernas noted that not all stores have liberal refund and exchange policies.  Many have strict requirements about what can be returned and the time frame of when it can be returned.  Also, some stores are charging a restocking fee even if you do have a receipt. 

“Companies with liberal return policies recognize the customer relations value of them,” he explained.  However, for them to continue these policies, it’s best not to abuse the privilege.  An example of abuse would be purchasing six or seven similar items to try on, recognizing that you will only be keeping one of them.  This type of product prospecting abuses the privilege the store offers to its customers with its exchange and refund policy.” 

Nominations Being Accepted for the BBB 2016 Torch Awards for Marketplace Ethics

Nominations are now being accepted to honor exceptional businesses with the Torch Awards from the Better Business Bureau serving Chicago and Northern Illinois.  These awards are presented annually to outstanding businesses in recognition of their commitment to high standards in relationships with their customers, employees, suppliers, competitors, and the surrounding communities.

Like the BBB Torch logo, the Torch Awards honor and help to illuminate the importance of a corporate conscience and the responsibility for creating a fair and honest marketplace.

The Torch Awards nomination process is open to all for-profit Chicago and northern Illinois based businesses. Nominations can come from individuals or businesses.

An individual may nominate the company he or she works for, owns or is affiliated with; as well as any company that individual does business with, or any company, which the nominating individual believes, meets the Torch Award criteria.  A company can also be nominated by an organization (i.e., Chamber of Commerce, academic institution, ethics organization, trade association, etc.).

Candidates for the 2016 Better Business Bureau’s Torch Award for Marketplace Ethics will be evaluated by a prestigious independent panel of judges from the business and academic communities against these criteria:

• High ethical standards of behavior toward customers, suppliers, shareholders, employees, and communities.
• Demonstrated ethical practices surrounding their buyer/seller relationships.
• Marketing, advertising, communications, and sales practices which reflect a true representation of what is being offered in the market place.
• Acknowledgment of ethical marketplace practices by industry peers and in the communities where they do business.
• Management practices and policies that give long-term value to shareholders, customers, employees, and vendors.
• Training programs that assist employees in executing ethics policies.

Companies are judged in five categories based on the following employee numbers: 1-9; 10-99; 100-999, 1,000-7,499 and 7,500+.  Recognition and awards ceremony will be held on Thursday, November, 19, 2015 – 11:00 a.m. at Loews Chicago O’Hare, 5300 North River Road, in Rosemont, IL.

To nominate a company, or for detailed information on judging criteria, go to www.bbb.org/chicago and click on the torch award link on the lower right side of the page. You may also e-mail Nina Castle at ncastle@chicago.bbb.org  or mail to BBB Torch Award, 330 N. Wabash Ave., #3120, Chicago, IL 60611.  Entries must be postmarked no later than Wednesday, September 30, 2015. Winners will be selected by October 16, 2015 and will be notified by phone following completion of judging.

BBB’s Top Five Summer Scams

Summer is a great time to take that long-overdue vacation or make much-needed home repairs, but as the weather heats up, so do scams. Better Business Bureau is warning consumers about these popular summer scams.

Beware of summer concert ticket scams. Before paying for concert tickets online, make sure the seller is reputable. Oftentimes, phony sellers will trick consumers into wiring money with no intention of sending real tickets. Most concert venues now allow ticket holders to print tickets from personal computers, which also gives scammers the opportunity to sell the same ticket over and over to unsuspecting consumers. Be wary of sellers who: offer a sad tale as to why they cannot use the tickets; only accept cash; want the money wired or transferred through a prepaid account; and/or pressure you to act quickly.

Be wary of high pressure door-to-door sales tactics. Many legitimate companies use door-to-door sales, and various city ordinances regulate solicitors to protect residents from unscrupulous individuals. However, consumers need to watch for individuals who try to work their way around the system to line their pockets. Many door-to-door salesmen offer deals for everything from driveway paving to air conditioning repair to security systems. Before saying yes, get all promises in writing, including start and finish dates. Never sign a contract that has an open-ended completion date or blank spaces

Keep your belongings safe during your move. Summer is the peak time of year for changing residencies, and unlicensed movers and dishonest scammers are waiting to take advantage of the busy season. Always research the company and check out the mover’s BBB Business Review at bbb.org. Not all price quotes online or over the phone are legitimate (or binding), and crooks are not likely to send an estimator to your home in advance. Also remember that the lowest estimate can sometimes be an unrealistic, low-ball offer, which may cost you more in the end.

Don’t let a scam ruin your vacation. Fake travel agents and websites are known for touting too-good-to-be-true deals in the hopes of getting your money in return. Whether it’s a fake timeshare rental or a falsely promised Disney vacation, don’t let a vacation scam take you for a ride. Make sure the offer is legitimate by checking bbb.org first. If there is no BBB Business Review on the company, dig deeper. Google the phone number or website to see if others report problems.

Beware of job scams that can turn a hot summer cold. Finding summer employment is a top priority for most college and high school students. Don’t let the seasonal job hunt turn into a huge waste of time and money. Always be wary of employers who require fees for training and background checks, or who tout “no experience needed.” BBB considers these red flags for employment scams.

Find out more about scams and sign up for scam alerts at BBB Scam Stopper (bbb.org/scam). For tips you can trust, visit bbb.org and for the latest, check out our blog, like us on Facebook or follow us on Twitter.

Play Safe Buying Bears/Packers Championship Tickets

The Better Business Bureau serving Chicago and Northern Illinois alerts fans purchasing tickets to the upcoming Chicago Bears-Green Bay Packers NFC championship game on Sunday to be cautious when buying tickets online.

According to StubHub.com the secondary–ticket market is a $10 billion dollar a year industry which includes professional brokers, speculators and season ticket holders. Because many of these sellers are not licensed or bonded and are often found on unregulated online auctions, online classifieds, and bulletin boards using person to person sales sports fans need to be more skeptical and on the alert.

“Chicago Bears fans need to do their research before spending large amounts of money on NFC Championship tickets,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Sports fans are often blinded by their devotion to their team and run the risk of putting their trust in a seller that doesn’t deserve it.”

In the past twelve months alone, there have been 171 complaints filed and more than 20,000 inquiries to the BBB about companies in the “Ticket Sales – Events” category.

If you are considering buying tickets on the secondary market, the Better Business Bureau offers the following tips to ensure a successful transaction:

·         Check to make sure the broker is licensed as required in the state of Illinois.

·         Avoid paying cash for tickets in person from a stranger in case the tickets

may be counterfeit.

·         Do not ever wire funds for payment.

·         Deal only with brokers that provide clear details concerning the terms of the transaction.  For instance, you should know up-front the amount of the surcharge for each purchase; whether the tickets are guaranteed; how they will be sent to you and the timeframe for delivery; and the broker’s refund, rescheduling and cancellation policies. 

·         Check if the ticket broker is a member of the National Association of Ticket Brokers (NATB) and the Better Business Bureau.

·         Visit several Web sites to compare prices and ticket availability for the event you’re interested in attending. 

·         Do not buy tickets from Internet sites that are not secure or lack a privacy policy; fail to disclose their refund, rescheduling and cancellation policies; do not provide a telephone number and fixed place of business; or insist on cash payment.

·         Verify the location of the seats on a seating chart provided by the venue to avoid purchasing non-existent seats or seats with obstructed views.

·         Pay with a credit card or another secure form of payment so you can dispute the charge with your credit card issuer or bank.

“The most common way sports fans are getting scammed online is by either paying for counterfeit tickets or tickets that never arrive,” added Bernas. “Even if the tickets do surface, they are sometimes not for the seats the seller advertised – which can mean being stuck with seats that aren’t next to each other, up in the nosebleed section, or with an obstructed view.” 

For more information on finding ticket brokers you can trust, visit www.bbb.org

Top 10 Scams of 2010

Scammers in 2010 continued to prey on people's difficult economic conditions and concerns about the general economy as well as follow the financial misfortunes of individuals, according to the Better Business Bureau's (BBB) summary of dishonest business dealings for the past year.

This listing is based on the number of times people requested information and inquiries through personal phone calls or the BBB website, as well as complaints.  These instances of service by the Better Business Bureau serving Chicago and Northern Illinois, including inquiries and complaints about specific businesses.

"Scammers continue to follow the money trail and target the desperate emotions of people," said Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. "This year the Top 3 scams were again related to personal finances.”

  

The list of the Top 10 most common scams in 2010 include:

1.      Work-At-Home and Fraudulent Employment Opportunities

2.      Credit Repair and Debt Negotiations/Settlement Services

3.      Advance Fee Lenders

4.      Mortgage Foreclosure Rescue/Loan Modification Scams

5.      Timeshare Resellers

6.      Mystery/Secret Shoppers

7.      Grant & Government Job Finding Entities

8.      Not so “Free” Trials

9.      Phishing, Smishing, and Vishing

10.  Check Scams

"We believe the reason we hear more about these Top 3 scams is because people lose money and then complain, rather than being tempted by deals and checking them out before sending money," explained Bernas. "This usually ends badly for people, who never get their money back."

Explanations of these scams are:

1. Work-at-Home and Fraudulent Employment Opportunities - These scams offer big dollars for little work or effort. However, when an interested consumer “applies,” they almost always ask for money up-front to pay for materials, training kits, or investment money. After sending payment, most consumers either have their checks deposited and never hear anything again, or obtain something that is completely useless. Internet employment opportunities looking for “shipping”, “billing managers” or “payment processors” frequently turn out to be fraudulent listings that are looking for victims to commit money laundering by accepting and forwarding payments.

2. Credit Repair and Debt Negotiation/Settlement Services - Due to the continuing economic situation, many consumers seek credit repair or debt negotiation/settlement companies. However, everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. Here are the important facts:

• These services can not ask for money in advance, automatically get legitimate negative reports off your credit report or guarantee to cut your debt by a specific percentage.
• Be extremely cautious about a service that recommends you not pay creditors so it can negotiate.  This could negatively affect your credit report.

3. Advance Fee Lenders - The victims are often contacted by phone or e-mail or respond to fake newspaper or online ads. They are offered quick and immediate loans despite past credit history and with little or no background check. The one requirement is the payment of advance fees. It is illegal for any business to request any fees to be paid up front prior to disbursing a loan. After the victim wires the money, he never sees his loan funds or advance fee payment again.

4. Mortgage Foreclosure Rescue/Loan Modification Scams – Because foreclosure information is publicly available, many scammer contact desperate homeowners and promise to save their homes while loan modification companies promise to renegotiate your loan and reduce your payments. It is unlawful for foreclosure consultants to collect money before (1) they give you a written contract describing the services they promise to provide and (2) they actually perform all the services described in the contract.

5. Timeshare Resellers – Consumers are generally contacted by phone or mail and told that their timeshare is in a “hot” market or they have a buyer willing to purchase their timeshare, but first they need to pay a hefty fee in advance or enter into contracts that same day. In a standard real estate transaction, fees are paid from the proceeds of the sale. In a timeshare scam, victims do not end up selling their timeshare and they generally do not hear from the company again.

6. Mystery/Secret Shoppers - Websites or newspaper ads often asks that you “register” and pay a fee in order to receive information about a certification program, a directory of mystery shopping companies, or baseless guarantees of obtaining mystery shopping positions. Most don’t exist, have already expired, or have nothing to do with legitimate secret shopping offers.

7. Grant & Government Job Finding Entities - Offers of “free” government grants or assistance with research, grant applications, or government employment should all be regarded with caution. The majority of these entities charge for services, applications, or information that can be easily obtained for free by doing online searches or visiting school financial aid offices.

8. Not so “Free” Trials – Online offers often do not disclose the billing terms and conditions or do not have such details prominently displayed online. Consumers often end up being repeatedly billed for products and services they didn’t want.

9. Phishing, Smishing, and Vishing – “Phishing” is a crime that uses spam e-mails to deceive consumers into disclosing their personal or financial information.

”Smishing” is the practice of sending a phishing message to steal credit card or identity information via cell phone text messaging.

The latest form of identity theft is “vishing” which uses Voice over Internet Protocol (VoIP) to gain access to private and personal financial information. Recipients hear automated recordings that alert them to fraudulent or suspicious activity on their credit card or bank accounts which instructs them to call and input their personal information.

10. Check Scams – Consumers receive a check in the mail, allegedly for winning a sweepstake, lottery or promotion. They are urged to deposit the check, and then write another from their own account to cover alleged taxes or fees. The check that was deposited turns out to be worthless while the check sent by the consumer is good, and that money ends up being unrecoverable.

“Remember, before giving any company credit or debit card information, the BBB recommends reviewing the website fully to avoid potential billing nightmares,” said Bernas. “These scams and others are preventable with the right resources.”  

For more information on these top 10 scams, visit www.bbb.org .

Related articles

• Consumer Ally's Top 5 Scams of 2010 (walletpop.com)
• How to recognize an email scam or phishing attempt (downloadsquad.switched.com)

BBB Warns Against Five Scams Targeting Senior Citizens

Fraud targeting senior citizens by scammers is an ongoing concern. The Better Business Bureau encourages families to keep the lines of communication open with their elders regarding finances and to recognize some common cons aimed at senior citizens.

According to a June 2010 survey by Investor Protection Trust, more than 7.3 million senior citizens—roughly 20 percent of Americans aged 65 or older-- have “been taken advantage of financially in terms of an inappropriate investment, unreasonably high fees for financial services, or outright fraud.”

“Having a serious conversation with your elderly parents and relatives about how they are managing their money is not easy, but it is extremely important in order to help protect them from criminals,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “It’s extremely important to keep the lines of communication open so that you can identify suspicious spending habits, as well as educate your elder family members on recognizing the red flags of common scams.”

The BBB warns against the following scams where seniors often fall victim:

Sweepstakes and Lottery Scams –Typically, the victim receives a letter in the mail stating they have won a lottery or sweepstakes; it might even claim to be from Publisher’s Clearing House or Reader’s Digest. The letter instructs the victim to deposit an enclosed check and then wire a portion back to the company to cover taxes or administration fees. While the funds will initially show up in the bank account, the money will be removed when the bank determines the check is fake. The victim loses whatever he wired back to the scammers—often amounting to thousands of dollars.

·         BBB Advice: Never wire money to someone you don’t know. You should never have to send money to receive any winnings from a lottery or sweepstakes. Be suspect of winning from something you never bought a ticket for or entered.

Medicare Scams – Navigating the Medicare system isn’t easy and some scammers will look for any opportunity to take advantage of the confusion. Commonly, a scammer will claim to be with Medicare and ask for personal information such as Medicare, Medicaid, social security, credit card or bank account numbers. The victim might be given any number of excuses to provide this information including that an error needs to be fixed, that he or she is part of a survey or eligible to receive free products or can sign up for a new prescription drug plan.  

• BBB Advice: Remind your elderly family members that Medicare will never call to ask for sensitive personal financial information. If you suspect fraud contact your local police or the Health and Human Services Office of Inspector General.

Bereavement Scams – Scammers will often try to take advantage of the increased vulnerability of senior citizens who have recently lost a loved one, such as a spouse; one common method is by scouring the obituaries and call looking to claim on the deceased person’s debts.

• BBB Advice: Offer help to elderly family members if they have recently lost a loved one and are inexperienced in managing finances and personal affairs. If you are uncertain about owing a debt when collectors call, ask for written confirmation.

Deceptive Professionals – While many scams targeting senior citizens might not have a face, some scammers will be invited in the front door including technicians, contractors, chimney sweeps, air duct cleaners and other services. Some professionals will lie about the extent of the problem or claim safety issues and then inflate prices for unsuspecting senior customers.

• BBB Advice – Find professionals you can trust by checking out www.bbb.org  Always research a company with the BBB before you hand over any money and report any deceptive services to your BBB, local law enforcement and Illinois’ Attorney General’s office. 

Investment and Work at Home Opportunities - Promises of easy money often target older adults because they may be looking to supplement their income. The pitch might come in the form of an investment opportunity that promises big returns, or as a way to make money at home for an upfront cost. Regardless of the specifics, the victim is offered what sounds like a great opportunity but the extra income never materializes.

• BBB Advice: Always research any work at home opportunity with the BBB prior to agreeing or sending money. Beware of investment or money-making offers that seem too good to be true or use high pressure sales tactics to get you to sign up immediately. Ask a trusted family member or friend to review anything that requires an advance fee be paid.

For more advice on avoiding scams and fraud visit: www.bbb.org

BBB Warns that iPad Scammers Are Already at Work

Even before the iPad is released to the public, scammers are busy devising ways to take advantage of early adopters. The Better Business Bureau serving Chicago and Northern Illinois warns eager shoppers to stay away from online offers to become a “tester” just to get a free iPad.

Apple announced the iPad in January and US customers have been able to pre-order since March for the April release. Because Apple bumped the delivery date for later orders, rumors started circulating that the company did not have enough iPads to meet pre-order demand.

“It was inevitable that scammers would take advantage of the excitement over the iPad to rip people off, just like they did with the iPod and the iPhone,” said Steve J. Bernas president & CEO of the Better Business Bureau serving Chicago & Northern Illinois. “Bogus offers most commonly claim you can become a tester or researcher and get an iPad for free. This is a deal that sounds, and definitely is, too good to be true.”

Tech Web site GeekSugar.com recently warned about spam e-mails requesting product testers for the iPad. The e-mail directs to the Web site Testitandkeepit.com which claims that they are looking for people to test the iPad for a couple months, as compensation you get to keep the iPad. The biggest red flag with this offer is that you have to provide your e-mail address and password in order to “tell your friends.” 

Offers to become a tester on Facebook also cropped up but with a different intent. As software company Sophos explains in an online video, the Facebook page “iPad Researchers Wanted—Get an iPad Early and Keep It” was designed to trick people into signing up for a cell phone subscription service that cost $10 a month. Sophos alerted Facebook to the page—which had already racked up more than 3,500 fans—and it was taken down, but users should be on the lookout for similar offers.

The BBB also warns there are phishing scams consumers should avoid.  The computer security company McAfee reported on their security blog that spam e-mails have landed in inboxes offering free iPads—the catch is that you have to buy items first and provide your credit card number.

If you’re planning to buy an iPad, Bernas suggests consumers shop through an authorized retailer or directly with Apple. He adds, “Eventually secondary markets for the iPad will spring up online on sites like Craigslist; but if you plan on buying an iPad secondhand, purchase it from someone local and never wire money as payment.”

For more advice on how to be a smart online shopper, visit http://www.bbb.org/us/consumer-tips-technology/

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