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Consumer Fraud Alerts
MYSTERIOUS CREDIT CARD CHARGES:
Better Business Bureau is warning consumers to closely check their credit card statements for mysterious charges that are cropping up by the thousands across the country. Upset online shoppers have contacted BBB about unwanted credit card charges that are ultimately being traced back to Connecticut-based Affinion Group, an affinity-marketing company that recently changed its name from Trilegiant.In the last 12 months alone, BBB has received nearly 1,800 complaints regarding Affinion Group. Most complainants state that they were shocked when they discovered unwanted charges on their credit card for membership services such as “Shoppers Advantage,” “Privacy Guard” or “Great Fun.” Charges ranged from $12 to as much as $59.99 every month. Some complainants had been charged by Affinion Group every month for several years, resulting in hundreds of dollars being paid for services they never took advantage of or even realized they had signed up for.“Consumers who get signed up for Affinion’s programs never actually provide their credit card information and therefore don’t suspect that the company will immediately begin charging their credit card every month,” said Fred T. Elsberry, Jr., President & CEO of the BBB Serving Metro Atlanta, Athens & Northeast Georgia. “The large volume and pattern of complaints BBB has received indicates that Affinion is not taking enough steps to ensure consumers understand exactly what they’re getting into when they click on enticing pop-up ads – and that’s why they have a longstanding unsatisfactory record in BBB’s book.”Some complainants were able to retrace their steps and find out how they were inadvertently signed up for membership services that resulted in the monthly charges. Typically, consumers had purchased items online – such as movie or airline tickets – from a reputable Web site. At some point in the transaction process, pop-up ads or chat boxes appeared offering incentives, such as $20 rebate cards for the Web site or claims like, “Click here for your 10% savings.”
Complainants allege they were signed up for unwanted services simply by clicking on pop-up ads or replying to chat windows, even though they ultimately declined the offers. Complainants never provided their credit card information to ads or chats because the company with which they had just made their online purchase had a pre-established agreement with Affinion Group to automatically transfer consumer information when they clicked on the ad or chat.“Most complainants report to BBB that they have no idea how or why they were being charged and were extremely angry when they discovered how much money they had lost through affinity marketing practices,” added Elsberry. “Unfortunately many credit card holders are learning the hard way about the value of reviewing their statements and finances every month.”BBB has also received complaints from consumers who knowingly signed up for the memberships or services – with the promise that they could cancel after a month and pay nothing – but then never received the promised rebate cards or other incentives, or were given the runaround when they tried to cancel their membership.In 2006, 16 state Attorneys General reached a settlement with Trilegiant Corp. and Chase Bank totaling $14.5 million, to resolve allegations that the two companies partnered to deceive consumers into paying for membership programs. According to BBB records, Trilegiant is now doing business as Affinion Group – but it’s the same business and same people continuing their pattern of misleading consumers by not making it clear when a consumer has purchased something.For more information on Affinion Group and to see the more than 50 names the company is doing business as, see BBB’s reliability report online.To find trustworthy businesses in thousands of industries, search BBB’s database of more than four million reports free-of-charge at http://www.bbb.org" target="_blank">www.bbb.org.
GAS-SAVING GADGETS:
Gasoline prices have risen 33 percent this year, and with the average cost of gas now at more than $4 a gallon, Americans are struggling to stay on the road without breaking their bank accounts. Some businesses though are seeing an opportunity to make money by selling fuel boosting additives or offering engine modifications to help drivers conserve fuel. However, Better Business Bureau is advising consumers to stay away from gas saving products, parts and modifications that sound too-good-to-be-true and is offering advice on more reliable ways to conserve fuel.Over the past decade, the Environmental Protection Agency (EPA) has tested more than 100 gas-saving devices and hasn’t identified any that significantly improve gas mileage. Energy and Environmental Analysis Inc., a technical consulting firm in Washington, D.C., estimates that 99 percent of the aftermarket products do not really change fuel economy. The EPA notes that the majority of “gas saving” products are harmless to vehicles, but testing has found that some products can cause substantial increases in exhaust emissions, thereby increasing the chances of actual engine damage.“With the cost of oil nearing $150 a barrel – and gas pushing $5 a gallon in some parts of the country – additives and gadgets to help conserve fuel are very tempting for cash-strapped consumers,” said Steve Cox, BBB spokesperson. “Unfortunately, these devices and additives will only end up draining the driver’s wallet without adding the much needed boost to their gas tank.”BBB notes that consumers are being inundated with ads that play off frustration and concern over high gas prices. One Web site asks: “Do You Want To Know RIGHT NOW How You Can Drive Around Using WATER as FUEL and Laugh At Rising Gas Costs, While Reducing Emissions and Preventing Global Warming?” Another Web site boasts that they “have discovered some little-known products that can actually help you increase your fuel mileage 10%, 20%, 40% and possibly more!” Despite advertising claims, BBB is advising drivers that there is no simple, single way to improve fuel economy.BBB recommends being particularly skeptical if advertisements claim:
Before buying any gas-saving device or additive, BBB recommends that consumers check out the company’s reliability report free-of-charge online at http://www.bbb.org" target="_blank">www.bbb.org.
DTV CONFUSION: BBB is alerting consumers to beware of a misleading advertising campaign by an Ohio-based company called Universal TechTronics. Ads are running across the U.S. promising free television channels, services and digital TV converter boxes, but are really a bait and switch tactic that prey on consumers’ lack of knowledge about digital TV conversion requirements.A BBB investigation found that Universal TechTronics is peddling “five-year warranties” for $59 that must be purchased with their “free” digital TV converter boxes. With shipping and handling fees rolled in, the total cost per box is nearly $100. BBB believes that these are the same boxes consumers can buy in electronics retail stores across the country using $40 U.S. government coupons that make the total cost to consumers about $20 per box.“The bottom line is that these ads confuse and mislead consumers,” said Steve Cox, BBB spokesperson. “Unfortunately consumers who do respond may find that not only will they not receive free products and services as implied by the ads, but they will end up paying more than they would have by taking advantage of the really good deal being offered through the DTV coupon program.”Universal TechTronics’ ads imply that their converter boxes are free and will provide free channel reception, similar to the type of services consumers receive through cable or satellite providers. Ads state, “No Bills: New ClearView TV receives free channels, no need to pay for cable to get the new digital picture quality and sound,” and “Public to Get Free TV Without Gov't Coupon!” Additionally, the ads use the term “Miracle ClearView TV” to disguise the product and further deceive consumers.Universal TechTronics has several product lines and also does business under the name Heat Surge LLC. Overall, in the past nine months BBB has received nearly 200 complaints about the company’s business practices.The company has received an unsatisfactory rating from BBB due to its pattern of complaints. To date, complaints against the company concern slow delivery or non-receipt of product, difficulty reaching customer service representatives, delays in obtaining refunds after returning merchandise, product quality issues and advertising claims. The BBB reliability report on this company is available online.Nationwide, 70 million TVs rely on antennas to receive over-the-air signals, making about 34 percent of all U.S. households at risk of losing broadcast reception to at least one TV set as a result of the digital transition according to the Leichtman Research Group. And nearly half of the households that could lose television service after the transition in 2009 are not prepared for the switch says a recent report from the federal government.“Digital TV conversion may seem like a complicated, confusing issue,” added Cox. “But there are a number of easy-to-use resources that consumers can turn to for reliable, trustworthy information to make digital TV conversion a painless and inexpensive process.”The National Association of Broadcasters (NAB) has a DTV Speakers Bureau composed of broadcast experts from over 650 local television stations nationwide. The NAB is working with Better Business Bureau to ensure consumers get the facts about the upcoming transition to digital television. To request a local broadcaster to address groups or organizations, people can contact the Speakers Bureau at 877-693-8809 (toll-free) or request a speaker online at www.DTVAnswers.com.For more information about digital TV conversion consumers can log on to the CBS46.com DTV Page.On February 17, 2009, television stations will stop analog broadcasts, and exclusively broadcast in digital. Viewers who get reception with rabbit ears or an antenna, or who don't have a digital TV, will need a digital converter box to receive television programming. Television sets made after March 2007 already have digital tuners built into them, as required by federal law. Also, analog sets hooked up to cable or satellite systems will not be affected by the switch to digital TV and won't need a converter box.To find reports on businesses in thousands of industries, consumers can search BBB’s database of more than four million reports free of charge at http://www.bbb.org" target="_blank">www.bbb.org.
Better Business Bureau is warning consumers to closely check their credit card statements for mysterious charges that are cropping up by the thousands across the country. Upset online shoppers have contacted BBB about unwanted credit card charges that are ultimately being traced back to Connecticut-based Affinion Group, an affinity-marketing company that recently changed its name from Trilegiant.In the last 12 months alone, BBB has received nearly 1,800 complaints regarding Affinion Group. Most complainants state that they were shocked when they discovered unwanted charges on their credit card for membership services such as “Shoppers Advantage,” “Privacy Guard” or “Great Fun.” Charges ranged from $12 to as much as $59.99 every month. Some complainants had been charged by Affinion Group every month for several years, resulting in hundreds of dollars being paid for services they never took advantage of or even realized they had signed up for.“Consumers who get signed up for Affinion’s programs never actually provide their credit card information and therefore don’t suspect that the company will immediately begin charging their credit card every month,” said Fred T. Elsberry, Jr., President & CEO of the BBB Serving Metro Atlanta, Athens & Northeast Georgia. “The large volume and pattern of complaints BBB has received indicates that Affinion is not taking enough steps to ensure consumers understand exactly what they’re getting into when they click on enticing pop-up ads – and that’s why they have a longstanding unsatisfactory record in BBB’s book.”Some complainants were able to retrace their steps and find out how they were inadvertently signed up for membership services that resulted in the monthly charges. Typically, consumers had purchased items online – such as movie or airline tickets – from a reputable Web site. At some point in the transaction process, pop-up ads or chat boxes appeared offering incentives, such as $20 rebate cards for the Web site or claims like, “Click here for your 10% savings.”
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GAS-SAVING GADGETS:
Gasoline prices have risen 33 percent this year, and with the average cost of gas now at more than $4 a gallon, Americans are struggling to stay on the road without breaking their bank accounts. Some businesses though are seeing an opportunity to make money by selling fuel boosting additives or offering engine modifications to help drivers conserve fuel. However, Better Business Bureau is advising consumers to stay away from gas saving products, parts and modifications that sound too-good-to-be-true and is offering advice on more reliable ways to conserve fuel.Over the past decade, the Environmental Protection Agency (EPA) has tested more than 100 gas-saving devices and hasn’t identified any that significantly improve gas mileage. Energy and Environmental Analysis Inc., a technical consulting firm in Washington, D.C., estimates that 99 percent of the aftermarket products do not really change fuel economy. The EPA notes that the majority of “gas saving” products are harmless to vehicles, but testing has found that some products can cause substantial increases in exhaust emissions, thereby increasing the chances of actual engine damage.“With the cost of oil nearing $150 a barrel – and gas pushing $5 a gallon in some parts of the country – additives and gadgets to help conserve fuel are very tempting for cash-strapped consumers,” said Steve Cox, BBB spokesperson. “Unfortunately, these devices and additives will only end up draining the driver’s wallet without adding the much needed boost to their gas tank.”BBB notes that consumers are being inundated with ads that play off frustration and concern over high gas prices. One Web site asks: “Do You Want To Know RIGHT NOW How You Can Drive Around Using WATER as FUEL and Laugh At Rising Gas Costs, While Reducing Emissions and Preventing Global Warming?” Another Web site boasts that they “have discovered some little-known products that can actually help you increase your fuel mileage 10%, 20%, 40% and possibly more!” Despite advertising claims, BBB is advising drivers that there is no simple, single way to improve fuel economy.BBB recommends being particularly skeptical if advertisements claim:
- Federal Endorsement. While the EPA does evaluate the legitimacy of claims made by companies that produce gas savers, no federal agency actually endorses gas-saving devices or additives.
- Glowing Consumer Testimonials. Marketing materials or Web sites for gas savers often contain consumer testimony on the increased fuel efficiency they experienced with the device or additive, but these are often works of fiction devised by the company.
- Outstanding, Too-Good-To-Be-True Results. Consumers should be extremely wary of big promises for big savings. If a gas-saving product really could increase mileage by as much as 40 percent with little effort or money, it is highly unlikely the inventor needs to peddle the product through spam e-mails or tacky-looking Web sites.
- Stay within the speed limit. BBB recommends that drivers stay within the posted speed limits since gas mileage tends to decrease rapidly at speeds above 60 miles per hour.
- Avoid “jackrabbit” starts and stops. Drivers can improve gas mileage up to five percent around town if they avoid jerky starts and stops. This means accelerating slowly when starting from a dead stop and avoiding pushing the pedal down more than one-quarter of the way; this allows the carburetor to function at peak efficiency.
- Use overdrive gears and cruise controls. Cruise control and overdrive gears improve fuel economy when driving on the highway.
- Go ahead, use the AC. Using the air conditioner at lower speeds will decrease fuel efficiency, but, at higher speeds, open windows create significantly more drag than the AC – and can reduce gas mileage by 10 percent.
- Remove excess weight from the trunk. An extra 100 pounds can reduce a typical car’s fuel economy by up to two percent.
- Keep the car properly maintained. The engine should be tuned, tires inflated and aligned, the oil changed on schedule and the air filters should be checked and replaced regularly. Replacing clogged filters can increase gas mileage up to 10 percent.
Before buying any gas-saving device or additive, BBB recommends that consumers check out the company’s reliability report free-of-charge online at http://www.bbb.org" target="_blank">www.bbb.org.
DTV CONFUSION: BBB is alerting consumers to beware of a misleading advertising campaign by an Ohio-based company called Universal TechTronics. Ads are running across the U.S. promising free television channels, services and digital TV converter boxes, but are really a bait and switch tactic that prey on consumers’ lack of knowledge about digital TV conversion requirements.A BBB investigation found that Universal TechTronics is peddling “five-year warranties” for $59 that must be purchased with their “free” digital TV converter boxes. With shipping and handling fees rolled in, the total cost per box is nearly $100. BBB believes that these are the same boxes consumers can buy in electronics retail stores across the country using $40 U.S. government coupons that make the total cost to consumers about $20 per box.“The bottom line is that these ads confuse and mislead consumers,” said Steve Cox, BBB spokesperson. “Unfortunately consumers who do respond may find that not only will they not receive free products and services as implied by the ads, but they will end up paying more than they would have by taking advantage of the really good deal being offered through the DTV coupon program.”Universal TechTronics’ ads imply that their converter boxes are free and will provide free channel reception, similar to the type of services consumers receive through cable or satellite providers. Ads state, “No Bills: New ClearView TV receives free channels, no need to pay for cable to get the new digital picture quality and sound,” and “Public to Get Free TV Without Gov't Coupon!” Additionally, the ads use the term “Miracle ClearView TV” to disguise the product and further deceive consumers.Universal TechTronics has several product lines and also does business under the name Heat Surge LLC. Overall, in the past nine months BBB has received nearly 200 complaints about the company’s business practices.The company has received an unsatisfactory rating from BBB due to its pattern of complaints. To date, complaints against the company concern slow delivery or non-receipt of product, difficulty reaching customer service representatives, delays in obtaining refunds after returning merchandise, product quality issues and advertising claims. The BBB reliability report on this company is available online.Nationwide, 70 million TVs rely on antennas to receive over-the-air signals, making about 34 percent of all U.S. households at risk of losing broadcast reception to at least one TV set as a result of the digital transition according to the Leichtman Research Group. And nearly half of the households that could lose television service after the transition in 2009 are not prepared for the switch says a recent report from the federal government.“Digital TV conversion may seem like a complicated, confusing issue,” added Cox. “But there are a number of easy-to-use resources that consumers can turn to for reliable, trustworthy information to make digital TV conversion a painless and inexpensive process.”The National Association of Broadcasters (NAB) has a DTV Speakers Bureau composed of broadcast experts from over 650 local television stations nationwide. The NAB is working with Better Business Bureau to ensure consumers get the facts about the upcoming transition to digital television. To request a local broadcaster to address groups or organizations, people can contact the Speakers Bureau at 877-693-8809 (toll-free) or request a speaker online at www.DTVAnswers.com.For more information about digital TV conversion consumers can log on to the CBS46.com DTV Page.On February 17, 2009, television stations will stop analog broadcasts, and exclusively broadcast in digital. Viewers who get reception with rabbit ears or an antenna, or who don't have a digital TV, will need a digital converter box to receive television programming. Television sets made after March 2007 already have digital tuners built into them, as required by federal law. Also, analog sets hooked up to cable or satellite systems will not be affected by the switch to digital TV and won't need a converter box.To find reports on businesses in thousands of industries, consumers can search BBB’s database of more than four million reports free of charge at http://www.bbb.org" target="_blank">www.bbb.org.
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