The Consumer Action Handbook

● Keep track of your order.
If it’s late, it is your choice
whether to wait longer or
cancel. If you cancel, your
money must be refunded
within 7 days (or your
account must be credited
within one billing cycle if
you charged the order). The
company can’t substitute a
merchandise credit for a
refund.
● When you use a credit
card to pay for products
or services, you have a
right to dispute the
charges if the items were
not delivered or were misrepresented.
(See page 18.)
● Never send cash - you
won’t have any proof of payment.
● Don’t act immediately.
High pressure sales tactics
are a danger sign of fraud.
Get all the information and
consider it carefully.
● Don’t believe promises of
easy money. No one can
legitimately claim you’ll
make big earnings from
business opportunities,
promise high returns on
investments, or guarantee
that you will win a lottery or
sweepstakes.
● Be careful what information
you provide. Give your
credit card, debit card, or
bank account number only
if you’re paying for a purchase
using that account
-never to verify your identity.
Don’t provide your
social security number
unless you’re applying for
credit or employment.
Using your personal information,
crooks can steal
from you and impersonate
you to steal from others.
(See privacy, page 26).
● Do not do business with
an unfamiliar company
whose only address is a
post office box.The company
may be nothing but a
mail drop that will give you
little or nothing for your
money and will be difficult
or impossible to locate if
you later have a complaint.
● Be wary of requests to
send your payment by
private courier or wire
service.The company may
be trying to avoid detection
by postal inspectors or to
get your money before you
have a chance to change
your mind.
● Do not be taken in by lotteries,
pyramid schemes,
multi-level marketing
schemes, or companies that
ask for payment in advance,
especially for employment
referrals, credit repair, or
providing a loan or credit
card.
● Beware of recovery services.
These scams try to
take your last dime by falsely
offering to get money
back that you lost to a
fraudulent scheme - for a
fee. There is no charge for
filing a complaint with a
government agency.
● Walk away or hang up
when you hear the following:
“Sign now or the price
will increase;” “You have
been specially selected...;”
“You have won...;” “All we
need is your credit card (or
bank account) number-for
identification only;” “All
you pay for is postage, handling,
taxes...;” “Make
money in your spare timeguaranteed
income...;” “We
really need you to buy magazines
(a water purifier, a
vacation package, office
products) from us because
we can earn 15 extra credits...;”
“I just happen to
have some leftover material
Sweepstakes
Don't pay if it's free or you
have won. It's another danger
sign of fraud if you are asked
to pay a fee to get something
free, claim a prize or win a
vacation. If you really won a
sweepstakes, you pay taxes
directly to the government,
not through the company.
from a job down the
street...;” “Be your own
boss! Never work for anyone
else again. Just send in $50
for your supplies and...;” “A
new car! A trip to Hawaii!
$2,500 in cash! Yours,
absolutely free! Take a look
at our...;” “Your special
claim number entitles you
to join our sweepstakes...;”
or “We just happen to be in
your area and have toner for
your copy machine at a
reduced price.”
If you can’t resolve your
problem by working directly
with the company, contact
your state or local consumer
protection agency for assistance
(page 72). Report possible
violations of FTC rules
to that agency at the address
on page 122. If the order was
placed by mail, report the
problem to the U.S. Postal
Inspection Service by calling
1-800-654-8896. While federal
agencies don’t usually act on
individual complaints, this information
helps them identify patterns
of abuse and take appropriate
action.
Reporting Fraud
Reporting fraud promptly
improves your chances of
recovery and helps law
enforcement authorities stop
scams before others are victimized.
Start by contacting your
state or local consumer agency
for advice and assistance.
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