1. Consumer Problems Mrs. Wilson Career & Financial Management

2. Fraudulent & Deceptive Marketing Practices Marketplace is full of deceptive and misleading ways for suppliers to increase demand for a product Dishonest sellers deny wrongdoing Consumers MUST educate themselves to recognize a potential fraud before they become victims

3. Bait & Switch Illegal sales technique in which a seller advertises a product with the intention of persuading consumers to buy a more expensive product Bait—bargain product

4. Referral Sales Promise of a money rebate, prize, or discount in exchange for providing names of friends as prospective customers Such promises are ILLEGAL

5. Fake Sales Most common of all frauds Merchant advertises a big sale but keeps the items at regular price Merchant may increase the price before the sale to decrease it SUPER SAVINGS doesn’t mean the prices have been reduced

6. Low-Balling Offer an unrealistically low price for a trade-in as a part of negotiating a new car deal Repair shops also use this deceptive practice

7. Pyramid Schemes Illegal multi-level marketing plans that promise distributors commissions from their own sales Cash investment is usually required Remember if it looks too good to be true it IS too good to be true

8. Pigeon Drop Any method by which a con artist convinces a vulnerable person to invest in a phony thing—swampland, companies, etc. Funds usually loaned out at high interest rates Contact local BBB if unsure

9. Fraudulent Representation Telephone or door-to-door sales made my people who CLAIM to represent well-known or reputable companies are another type of swindle Check with the company before buying

10. Health & Medical Product Frauds Miracle pills, creams, and devices that enhance the consumer’s health and beauty Magazines, newspapers, web sites, and flashy tabloids usually carry these ads Products are ineffective

11. Infomercials Lengthy paid commercial TV advertisement that includes testimonials, product demonstrations, and presentation of product features Last 15-30 minutes Usually emotional Richard Simmons!!!

12. Internet Fraud They can appear genuine Don’t assume that a professional- looking web site means that the company is legitimate Stick with businesses you know

13. Telemarketing Fraud About 140,000 telemarketing firms operating in the US today. Over 10% of these or 10,000 are fraudulent and the FBI estimates that consumers lose over $40 billion each year to criminal telemarketers

14. Shop Smart, Including Online Be aware of prices Shop at several stores Comparative shopping Understand sale terminology Avoid impulse buying Plan your purchases Compute unit prices (see page 811)

15. More Advice Read labels Check containers carefully Read contracts Keep receipts & warranties Compute total cost Ask for references Be loyal Wait a day for major purchases

16. Redress Remedy to a problem When you have a complaint, you have the right to seek redress First go to the store Put your complaint in writing File a complaint with BBB Seek legal recourse