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(cooperative
£ xtension
Service
Don't Be Robbed by Fraud
m
>6R9<*
Guide 400 G-205
Fraudulent and deceptive schemes surface in many
forms. Some are subtle and difficult for the consumer
to detect.
Being an alert consumer is the first step in self-
defense. Many problems can be avoided by recognizing some of the fraudulent schemes and tactics that
are used to cheat consumers of their money.
Bait and Switch
The bait and switch sales scheme is used as a
"come-on" to lure the buyer into the store.
A product is advertised at a very low price —
"Automatic washer, only $159." The bait is out. You
go to the store and find it is "nailed to the floor" in
trade lingo. The salesman says, "You wouldn't want
that model. Why, it only has one cycle and just
washes with cold water. Now, this $200 model is a
fine machine." You are switched to a higher priced
product.
The ad reads, "Quarter of beef — only 69 cents per
pound." You check at the store and are told that the
beef is rather fat and probably tough. But, lucky
you - they just happen to have a better grade on
hand at 99 cents a pound.
Bait and switch selling is against the law in New
Mexico. If you are approached with this sales scheme,
report it to the Consumer Protection Division, Attorney General's Office, in Santa Fe.
Contest Winners
"Winners" usually find there is a catch such as
buying additional goods.
A Nebraska firm was charged with using deceptive
contests and false pricing claims to sell sewing
machines.
Ads for the "60th Anniversary Jackpot" stated
that grand prize winners would receive free sewing
machines and other winners would receive special
discounts.
The Federal Trade Commission says all or nearly
all who entered the contest were grand winners. The
"winners" did not receive a free sewing machine unless they purchased additional products or services.
Free Life-Time Membership
Door-to-door sellers of vacuum cleaners in New
York used this new twist to sell their products. The
customer is promised a free life-time membership in a
wholesale shopping service that will save them enough
to pay for the cleaner. The Federal Trade Commission
says the membership is free for only one year and
then must be renewed by an annual payment of
$12.50 per year. In addition, says the FTC, the merchandise from the shopping service is neither wholesale nor at "cost" prices.
Among other misrepresentations cited by the FTC
is the claim that the vacuum cleaner will be left on
approval when the customer signs a receipt. The
"receipt" is actually a purchase contract.
Vending
A Texas firm selling franchises for hot beverage dispensing machines used deceptive means to recruit
franchisers and distributors.
Claims that one could earn up to $25,000 to
$45,000 a year were false, according to the FTC.
Exclusive distributorships and continuing assistance
from the firm were not provided by the firm as
claimed. Profitable routes were not established as
stated. Claims that the machines were well constructed
and durable were misleading.
Encyclopedias
An encyclopedia company was charged with using
deceptive means to gain entry to a consumer's home
by misrepresenting that the purpose of the visit is to
Object Description
| Title | Don't be robbed by fraud, 1977 |
| Series Designation | Guide 400 G-205 |
| Description | Guide containing brief, general information on common fraudulent schemes encountered by consumers and law enforcement. Reprinted May 1977. |
| Subject | Fraud--New Mexico--Prevention; fraud (NAL); New Mexico (NAL) |
| Creator | Martin, Jackie M.; |
| Date Original | 1977-05 |
| Digital Publisher | New Mexico State University Library |
| Rights | Copyright, NMSU Board of Regents |
| Collection | NMSU Cooperative Extension Service and Agricultural Experiment Station Publications |
| Source | Scan produced from physical item held by the NMSU Library. |
| Type | Text |
| Format | image/tiff |
| Language | eng |
Page Description
| Title | Page 1 |
| Series Designation | Guide 400 G-205 |
| Subject | Fraud--New Mexico--Prevention; fraud (NAL); New Mexico (NAL) |
| Creator | Martin, Jackie M.; |
| Date Original | 1977-05 |
| Digital Publisher | New Mexico State University Library |
| Rights | Copyright, NMSU Board of Regents |
| Collection | NMSU Cooperative Extension Service and Agricultural Experiment Station Publications |
| Digital Identifier | UAAPg00G2050001 |
| Is Part Of | Don't be robbed by fraud |
| Type | Text |
| Format | image/tiff |
| Language | eng |
| OCR | (cooperative £ xtension Service Don't Be Robbed by Fraud m >6R9<* Guide 400 G-205 Fraudulent and deceptive schemes surface in many forms. Some are subtle and difficult for the consumer to detect. Being an alert consumer is the first step in self- defense. Many problems can be avoided by recognizing some of the fraudulent schemes and tactics that are used to cheat consumers of their money. Bait and Switch The bait and switch sales scheme is used as a "come-on" to lure the buyer into the store. A product is advertised at a very low price — "Automatic washer, only $159." The bait is out. You go to the store and find it is "nailed to the floor" in trade lingo. The salesman says, "You wouldn't want that model. Why, it only has one cycle and just washes with cold water. Now, this $200 model is a fine machine." You are switched to a higher priced product. The ad reads, "Quarter of beef — only 69 cents per pound." You check at the store and are told that the beef is rather fat and probably tough. But, lucky you - they just happen to have a better grade on hand at 99 cents a pound. Bait and switch selling is against the law in New Mexico. If you are approached with this sales scheme, report it to the Consumer Protection Division, Attorney General's Office, in Santa Fe. Contest Winners "Winners" usually find there is a catch such as buying additional goods. A Nebraska firm was charged with using deceptive contests and false pricing claims to sell sewing machines. Ads for the "60th Anniversary Jackpot" stated that grand prize winners would receive free sewing machines and other winners would receive special discounts. The Federal Trade Commission says all or nearly all who entered the contest were grand winners. The "winners" did not receive a free sewing machine unless they purchased additional products or services. Free Life-Time Membership Door-to-door sellers of vacuum cleaners in New York used this new twist to sell their products. The customer is promised a free life-time membership in a wholesale shopping service that will save them enough to pay for the cleaner. The Federal Trade Commission says the membership is free for only one year and then must be renewed by an annual payment of $12.50 per year. In addition, says the FTC, the merchandise from the shopping service is neither wholesale nor at "cost" prices. Among other misrepresentations cited by the FTC is the claim that the vacuum cleaner will be left on approval when the customer signs a receipt. The "receipt" is actually a purchase contract. Vending A Texas firm selling franchises for hot beverage dispensing machines used deceptive means to recruit franchisers and distributors. Claims that one could earn up to $25,000 to $45,000 a year were false, according to the FTC. Exclusive distributorships and continuing assistance from the firm were not provided by the firm as claimed. Profitable routes were not established as stated. Claims that the machines were well constructed and durable were misleading. Encyclopedias An encyclopedia company was charged with using deceptive means to gain entry to a consumer's home by misrepresenting that the purpose of the visit is to |
