Using Internet Access Products
If you're interested in
using the Web to expand your small business,
be cautious. Some unscrupulous companies,
claiming to provide free web design and
hosting services, are billing small businesses
for services that were never authorized
and have little value. The bogus charges
usually appear on businesses' phone bills
— an illegal practice known as "cramming"
— or on fraudulent invoices.
The
Scam
You get a call from a company offering you
a free, 30-day website. They say you can
continue the service for a nominal fee,
say $25 or $30 a month, and cancel at any
time. Some service providers state that
you'll be billed automatically after the
30-day period; others claim you won't be
billed after the 30 days unless you tell
them you want to continue the service.
Before or after explaining
the offer, the provider asks for basic information
about your company: the address, contact
person, business hours and a brief description
of the business. The provider says that
your free website will be up and running
within a week, and that you'll receive a
welcome package, which may include a printed
copy of the website, instructions for accessing
the site, and a phone number to call to
make changes or cancel the service.
In fact, unscrupulous
service providers bill you, whether you
authorize the services or tell the provider
that you want to cancel. Also, many of the
services have little value. That's because
these providers design and host sites that
contain limited information about the business,
include misinformation or misspellings,
and lack important features. Moreover, most
of the sites are not listed with major search
engines. If customers can't find your site,
it's worthless to your bottom line. In addition,
you probably won't see the welcome package,
but you will see the bill - either on your
phone bill or as a direct invoice.
Unless you review your
monthly phone bills or invoices carefully
you could end up paying unauthorized charges
for months before you notice the scam.
Protect
Your Business
You can protect your business from losing
money to unordered services. Here's how:
- Know your rights. If you receive bills
for services you didn't order, don't pay.
The law allows you to treat unordered
services as a gift.
- Review your phone bills as soon as they
arrive. Be on the lookout for charges
for services you haven't ordered or authorized.
If you find an error on your bill, follow
the instructions on your statement.
- Assign purchasing to designated staff.
And document all your purchases.
- Train your staff in how to respond to
telemarketers. Advise employees who are
not authorized to order services to say,
"I'm not authorized to place orders.
If you want to offer or sell us something,
you must speak to ______________."
- Buy from people you know and trust.
Authorized employees should be skeptical
of "cold" or unsolicited calls
and feel comfortable saying "no"
to high pressure sales tactics.
Where to Complain
The FTC works for the
consumer to prevent fraudulent, deceptive
and unfair business practices in the marketplace
and to provide information to help consumers
spot, stop and avoid them. To file a complaint
or to get free information on consumer issues,
visit www.ftc.gov or call toll-free, 1-877-FTC-HELP
(1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity
theft and other fraud-related complaints
into Consumer Sentinel, a secure, online
database available to hundreds of civil
and criminal law enforcement agencies in
the U.S. and abroad.
You also
may want to share your experiences with
other small businesses in your community
to help them avoid a rip-off.
The Better
Business Bureau also may be able to
help you with your problem. You can file
a complaint with the BBB by using the online
complaint form or by contacting the local
BBB in your community.
This Business Alert was
produced in cooperation with the Small Business
Administration, American Chamber of Commerce
Executives, Better Business Bureau, National
Federation of Independent Businesses and
Yellow Pages Publishers Association. For
more information that may be helpful to
your small business, contact any of these
organizations.
American
Chamber of Commerce Executives
4232 King Street
Alexandria, VA 22302
Better
Business Bureau
Contact your local BBB; look for the phone
number in your telephone directory or contact
the
Council
of Better Business Bureaus, Inc.
4200 Wilson Boulevard, Suite 800
Arlington, VA 22203-1804
National
Federation of Independent Businesses
53 Century Boulevard, Suite 300
Nashville, TN 37214
1-800-NFIB NOW
Small
Business Administration Answer Desk
1-800-U-ASK-SBA (1-800-827-5722)
Yellow Pages Publishers
Association
3773 Cherry Creek North Drive, Suite 920
Denver, CO 80209
|